Cumulus Talks To Creditors About Swapping Some Notes For Other Debt, Equity
March 23, 2016 at 3:54 AM (PT)
CUMULUS MEDIA is negotiating with some of its creditors to swap some of its notes for revolving debt and equity, the company informed the SEC in a Form 8-K filing submitted YESTERDAY (3/22).
The company said that it has entered non-disclosure agreements with some holders of its 7.75% Senior Notes due 2019 so it can talk with them about a potential swap of the notes for up to 42.5% of the principal amount of each note in certificates for a trust that would hold a participation in CUMULUS's $200 million revolving credit facility. The lenders would assign their commitments to a new lender, and the revolving credit facility would be extended out to MAY 15, 2020 with an increased LIBOR margin to 11% and increased undrawn commitment fee to 5%. And the noteholders would get a pro rata share of an offering of 19.9% of the company's pro forma outstanding common stock.