Cumulus Sues JPMorgan Chase For Obstructing Refinancing Plan
December 13, 2016 at 7:14 AM (PT)
CUMULUS MEDIA INC. has filed a lawsuit against lender JPMORGAN CHASE & CO. in U.S. District Court for the Southern District of NEW YORK, alleging that JPMORGAN breached a 2013 credit agreement and unreasonably withheld consent to a refinancing that CUMULUS says would reduce the company's leverage by up to $305 million.
REUTERS reports that in the suit, CUMULUS says that it "needs to proceed with its proposed refinancing, and it needs to do so quickly," specifically by FRIDAY, JANUARY 27th, 2017. It says that its $2.4 billion debt load, including $610 million of senior notes due in 2019, would be eased by the refinancing of the senior notes using part of the company's $200 million revolving line of credit, retiring the notes at an up to 50% discount that would also avoid a "springing maturity" on a $1.84 billion loan in JANUARY 2019 if over $200 million of the notes remain outstanding at that time, but alleges that JPMORGAN is refusing to allow transfer of the revolving credit line to new lenders and has not signed off on a critical loan amendment.
CUMULUS is looking for the court to order that CUMULUS be allowed to access its revolving credit line for the refinancing plan and JPMORGAN to consent to the credit line assignment.