Cumulus Makes Deal With Lenders On Covenants
June 29, 2009 at 4:57 PM (PT)
CUMULUS MEDIA has made a deal with its lenders for a third amendment to its senior secured credit facility, giving the company compliance relief from its principal financial covenants, including leverage and fixed charge ratios, until MARCH 31st, 2011. The changes to give CUMULUS more breathing room were "overwhelmingly" approved by the lenders, the company said in a press release.
Chairman/Pres./CEO LEW DICKEY said, "We value the partnership with our lenders and appreciate their constructive approach that enables us to operate through the current economic environment. It was a mutually beneficial outcome for our lenders and shareholders."
CUMULUS will be required to maintain minimum liquidity and consolidated EBITDA levels through DECEMBER 31st, 2010. It has also voluntarily prepaid $32.5 million of the outstanding principal amount of the term loan, meaning that as of JUNE 29th, 2009, CUMULUS had outstanding borrowings of about $647.9 million under the senior secured credit facility. In addition, the Company has agreed to issue warrants to the lenders who consented to the amendment exercisable for an aggregate of 1,250,000 shares of the Class A common stock of the Company.
CITADEL SECURITIES served as CUMULUS's sole financial advisor in connection with the amendment.