Cumulus ups first-lien term loan to $1.325 billion, trims revolver

By Sara Rosenberg

New York, July 22 - Cumulus Media Inc. increased its seven-year first-lien term loan (Ba2/BB) to $1.325 billion from $1.25 billion and decreased its five-year revolver (Ba2/BB) to $300 million from $375 million, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 basis points, after firming recently at the wide end of the Libor plus 425 bps to 450 bps talk, with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $2.415 billion credit facility also includes a $790 million 71/2-year second-lien term loan (B2/B-) priced at Libor plus 600 bps with a 1.5% Libor floor, a discount of 98½ and call protection of non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

J.P. Morgan Securities LLC, UBS Securities LLC, Macquarie Capital, RBC Capital Markets LLC and ING Financial Markets LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Citadel Broadcasting Corp. and to refinance all of the outstanding debt of Cumulus, Citadel and Cumulus Media Partners LLC.

Other funds for the transaction will come from $500 million of equity from Crestview Partners and Macquarie Capital.

Citadel is being acquired for $37 per share, or $2.4 billion. Citadel stockholders have the option to receive the per-share payment in cash or get 8.525 shares of Cumulus common stock, subject to proration.

Closing is expected by the end of this year, subject to customary conditions, including Citadel stockholder approval, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and regulatory approval from the Federal Communications Commission.

Cumulus is an Atlanta-based radio broadcaster. Citadel is a Las Vegas-based radio company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.