Entercom, Bank Of America Amend Credit Agreement

Amends BofA Deal

ENTERCOM has reached agreement with BANK OF AMERICA on an amendment to its Credit Agreement that changes the company's maximum leverage ratio to 7 to 1 in 2010 and drops the ratio in quarterly increments starting MARCH 31st, 2011 down to 6 to 1 on and after DECEMBER 31st, 2011. 

The company's interest rate remains the same except for two new pricing levels based on the leverage ratio, with a higher rate if the ratio exceeds 6.5 to 1, and restrictions will apply on the company's ability to declare dividends and repurchase stock as long as the ratio exceeds 6 to 1.

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