Beasley Amends Credit Agreement
June 18, 2014 at 3:44 AM (PT)
BEASLEY BROADCAST GROUP, INC.'s BEASLEY MEZZANINE HOLDINGS, INC. subsidiary has reached agreement on a third amendment to its credit agreement with its lenders and agent GENERAL ELECTRIC CAPITAL.
The amendment allows BEASLEY, when its total leverage reaches a 3:1 ratio, to pay larger dividends, eliminates the requirement that it prepay the term loans using excess cash flow, and increases the amount of cash equivalents that it can hold outside an account with one of the lenders.
It also extends the maturity date of the term loans for two more years to AUGUST 2019, lowers the interest rate on all loans by 0.25% with an additional step-down in the rate when a total debt leverage ratio of 2.75:1 is reached, and increases the total leverage ratio required to be maintained under the financial covenant for the first six months of 2015 by 0.25%.
BEASLEY is also exercising its option to add an additional $5.75 million of incremental term loan debt, which will be used with additional cash to repay outstanding principal on its revolving loans.