Emmis Amends Credit Agreement With Lenders
May 1, 2015 at 3:57 AM (PT)
EMMIS COMMUNICATIONS CORP. has entered a second amendment to its credit agreement with JP MORGAN CHASE BANK, N.A. and FIFTH THIRD BANK that allows the company to increase its maximum total leverage ratio.
The change, filed with the SEC THURSDAY (4/30), ups the ratio from its present 4:1 to 6.75:1 for MAY 31, 2015-FEBRUARY 29, 2016; 6.5:1 for the quarter ending MAY 31, 2016; 6.25:1 for the quarter ending AUGUST 31st, 2016; 6:1 for the quarter ending NOVEMBER 30th, 2016; and 5.75:1 for the quarter ending FEBRUARY 28th, 2017, after which it goes back to 4:1.
EMMIS will pay a 2% fee on some prepayments of its term loan before the first anniversary of the amendment and a 1% fee on the prepayments of the term loan from the first anniversary of the amendment until the second anniversary of the amendment. The applicable margin goes up to 5% for ABR loans and 6% for Eurodollar loans, the amortization rises to .5% per calendar quarter through JANUARY 1, 2016 and to 1.25% per calendar quarter thereafter, and EMMIS will also pay a .5% fee to each consenting lender.