Westwood One Gets Break From Debtholders
October 16, 2009 at 4:02 AM (PT)
WESTWOOD ONE has entered deals with the holders of its Senior Notes and WELLS FARGO FOOTHILL to amend the terms of its indebtedness to waive compliance with debt leverage covenants which were to be measured on DECEMBER 31st.
The company, in an SEC filing, says that it has agreed to pay down its Senior Notes by between $15 and $20 million depending on the results of a stock offering and the sale/leaseback of the company's CULVER CITY buildings. If the offering or real estate deal don't get done before MARCH 31st, WESTWOOD ONE will pay down $3.5 million of the Senior Notes.
The company has also warned that it will downwardly revise its financial projections for the rest of 2009 and 2010 based on "weaker than expected economic conditions, including in the advertising market," which will "more likely than not reduce the fair value of one or more of the Company's reporting units below its carrying value."
Specifically, the METRO TRAFFIC division is likely to record a goodwill impairment estimated in the $40 to $60 million range.