Citadel amends loan, allowing for repayment of term loans at a discount

By Sara Rosenberg

New York, March 19 - Citadel Broadcasting Corp. amended its credit facility, allowing for the voluntary prepayment of up to $200 million of term loan debt at a discount for a period of 90 days, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The prepayment will work as follows: The company will specify a range of acceptable discount percentages to the principal amount of term loans, lenders will then specify a discount at which such lender is willing to permit the voluntary prepayment, and the agent will determine, in consultation with the company, the applicable discount for each voluntary prepayment, which will be the lower of the acceptable discounts at which the company can complete voluntary prepayment and the highest acceptable discount specified by the lenders that is within the range.

The dollar amount of the discount for any net voluntary prepayment will reduce the amount of excess cash flow that the company is otherwise permitted to use to make certain permitted dividend and other payments.

In addition, the amendment reduced the amount of uncommitted incremental bank debt to $350 million from $750 million.

The amendment was completed on March 13.

JPMorgan is the administrative agent on the deal.

Citadel is a Las Vegas-based radio broadcasting company.

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