Beasley Media Has A New $225 Million Credit Agreement

New Credit Agreement

BEASLEY MEDIA has filed a Form 8-K with THE SECURITIES AND EXCHANGE COMMISSION (SEC) regarding a new $225 million credit agreement.

BEASLEY writes, "On [FRIDAY] NOVEMBER 17, 2017 (the 'Closing Date'), BEASLEY MEZZANINE HOLDINGS, LLC (the 'Borrower'), a wholly owned subsidiary of BEASLEY BROADCAST GROUP, INC. (the 'Company'), entered into a new credit agreement by and among the Company, the Borrower and U.S. BANK, NATIONAL ASSOCIATION, as administrative agent and collateral agent, providing for a term loan B facility in the amount of $225 million (the 'Term Loan Facility') and a revolving credit facility of $20 million (the 'Revolving Credit Facility and together with the Term Loan Facility, the 'New Credit Facilities'). Proceeds from the New Credit Facilities were primarily used to repay the old credit facilities.

"The New Credit Facilities are secured by substantially all assets of the Company, the Borrower and their material subsidiaries," adds BEASLEY. "The Company and the Borrower’s material subsidiaries guarantee repayment of the New Credit Facilities. The Term Loan Facility matures on November 1, 2023 and will amortize in quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount of the Term Loan Facility. The first amortization payment is due at the end of the first full fiscal quarter after the Closing Date and the remaining balance of the original principal amount of the Term Loan Facility outstanding at maturity will be paid in a final balloon payment. The Revolving Credit Facility terminates on the fifth anniversary of the Closing Date and loans thereunder may be borrowed, repaid, and reborrowed up to such date.

"Loans under the New Credit Facilities will, at the Borrower’s option, bear interest at either LIBOR plus 4% or base rate plus 3%. Solely with respect to the Term Loan Facility incurred on the Closing Date, LIBOR is subject to a 1.00% floor and base rate is subject to a 2.00% floor. With respect to the revolving credit facility, base rate is subject to a 0.00% floor. Interest payments are, for loans based on LIBOR, due at the end of each applicable interest period unless such interest period is longer than three months, in which case they are due at the end of each three month period. Interest payments for loans based on the base rate, are due quarterly.

"Under certain circumstances described in the Credit Agreement, the Company may increase the New Credit Facilities so long as the Company does not exceed a maximum first lien leverage ratio of 4.00:1.00 plus an additional $56.8 million.
The New Credit Facilities are subject to customary negative covenants as well as a financial covenant that is a maximum first lien net leverage ratio (subject to a $20 million cap on cash netting) that will be tested at the end of each fiscal quarter beginning with the quarter ending December 31, 2017."

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