Radio One Refinances
June 16, 2010 at 5:14 PM (PT)
RADIO ONE has secured a new senior secured credit facility from DEUTSCHE BANK, including a $50 million revolving credit facility and a $350 million term loan, that it will use to refinance its current outstanding debt.
In addition, the company announced an exchange offer of $1,000 worth of its outstanding 8 7/8% senior subordinated notes due 2011 for $1,000 worth of new 11% senior grid notes due 2017., as well as $1,000 worth of outstanding 6 3/8% senior subordinated notes due 2013 for $900 worth of the new 11% notes. Existing note holders will have the opportunity to buy an aggregate $100 million of 8 1/2-9% second-priority senior secured grid notes due 2016, with the proceeds used, in part, to pay $82 million for an additional 19% of TV ONE, of which the company presently owns 37%. The company says that holders of 80% of the existing senior notes have already taken the offers, with 95% required to make the deal effective.