Cumulus Restructures Loan For Citadel Purchase
July 19, 2011 at 9:01 AM (PT)
CUMULUS MEDIA has "increased the interest rate and changed the structure on $2.04 billion in loans it's seeking to back the acquisition of CITADEL BROADCASTING CORP. after lenders pushed back against the original terms," reports BLOOMBERG.
CUMULUS lowered the first-lien term loan to $1.25 billion, to offer a $790 million second-lien portion, said three people with knowledge of the deal, to BLOOMBERG.
"The market, with the reemergence of the GREECE crisis and worsening economic data, has shifted more neutral," said RS INVESTMENTS' MARC GROSS. "You needed a little bit of a correction to help restore sanity to the market and that’s what’s happening. Sanity is being restored to the market."
JPMORGAN CHASE is handling the transaction, and had to rework the deal after loan prices fell in JUNE.