Cumulus Media cuts commitments to $150 million, amends leverage ratio

By Marisa Wong

Madison, Wis., June 4 - Cumulus Media Inc. amended its first-lien credit agreement on May 31 to reduce total commitments to $150 million from $300 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also replaces the consolidated total net leverage ratio covenant under the company's revolving credit facility with a consolidated first-lien net leverage ratio covenant. Through Dec. 31, 2013, the company must comply with a consolidated first-lien net leverage ratio of 4.5 to 1 if amounts are outstanding under the revolver. This ratio will decline to 3.75 to 1 at Dec. 31, 2014.

As of March 31, the company had no amounts outstanding under the revolver. If the company had been subject to the consolidated first-lien net leverage ratio covenant instead of the consolidated total net leverage ratio covenant at that date, the ratio would have been 3.2 to 1, and the company would have had $150 million of available borrowing capacity under the revolver, the filing noted.

The company entered into the first-lien credit agreement on Sept. 16, 2011 and amended and restated the agreement on Dec. 20.

Cumulus is an Atlanta-based radio broadcaster.

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