Cumulus Media pays down bank debt, tenders for 6¾% notes

By Rebecca Melvin

Concord, N.H., May 26 – Cumulus Media Inc. announced it is accelerating its debt reduction by paying down $175 million of debt using cash on hand, according to a company news release.

The company is accelerating debt repayments, which will de-lever the balance sheet more quickly, reduce interest expense and further increase its free cash flow.

Specifically, the company repaid $60 million of its ABL revolver due 2025 on May 17. That represented the entirety of the amount outstanding under the facility. Following the paydown, the ABL revolver is undrawn and available as liquidity for general corporate purposes.

It is required under the terms of its debt agreements to make mandatory debt prepayments from the proceeds of the company’s previously announced sale of land in Bethesda, Md., in June 2020 and sale of towers and related assets in September 2020.

It also paid down about $89 million of its term loan credit facility due 2026 on May 25. The action was related to a mandatory prepayment obligation. About $65 million of the prepayment related to the land sale and about $23 million of the prepayment related to the tower sale.

In addition, the company launched a tender offer for its 6¾% senior secured first lien notes due 2026. The offer was made at par for about $26 million, which represented the pro rata amount to be offered from the proceeds of the tower sale.

The company said that since it emerged from bankruptcy in 2018 it has reduced its net debt by almost $600 million.

Cumulus Media is an Atlanta-based radio broadcaster.

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