CKX gets $125 million revolver

By Sara Rosenberg

New York, May 25 - CKX Inc. has closed on a new $125 million five-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Bear Stearns acted as lead arranger, bookrunner and administrative agent, UBS Securities and The Bank of New York acted as co-syndication agents, and Lehman Commercial Paper and Credit Suisse acted as co-documentation agents.

Covenants include a maximum debt to EBITDA ratio of 4.5 to 1.0, a minimum EBITDA to interest expense ratio and minimum EBITDA.

Borrowings are available for general corporate purposes and to finance future acquisitions and joint ventures.

The new revolver, which closed on Wednesday, replaces a previous $50 million credit facility commitment.

"We are pleased to announce this revolving credit facility as the first step in establishing the debt portion of CKX's permanent capital structure, which we anticipate will also include term loans, debt securities or other long-term debt arrangements," said Robert F.X. Sillerman, chairman and chief executive officer, in a company news release.

"Our plan for the company continues to include opportunistic acquisitions and it is important that we maintain significant capital availability."

CKX is a New York-based company involved in ownership, development and commercial utilization of entertainment content.

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