Cumulus Media term B rises on earnings; Blount, Diebold, Western Digital bank debt on deck

By Sara Rosenberg

New York, March 11 – Cumulus Media Inc.’s term loan B gained some ground in the secondary market on Friday on the back of the release of fourth quarter numbers, which, despite showing year-over-year declines in income, revenue and adjusted EBITDA, were better-than-expected.

Meanwhile, in the primary market, Blount International Inc. and Diebold Inc. joined the near-term new issue calendar, and Western Digital Corp. surfaced with timing on its institutional loan as well as an updated structure from what was previously outlined by the company.

Cumulus Media strengthens

Cumulus Media’s term loan B moved up in trading on Friday to 69 bid, 71 offered from 67 bid, 70 offered on the heels of the company’s release of fourth quarter results late in the prior session that beat analyst expectations, according to a trader.

For the fourth quarter, the company reported a net loss of $4.6 million, or $0.02 per share, versus net income of $3.36 million, or $0.02 per share, in the prior year.

Net revenue for the quarter was $308.8 million, compared to $329.2 million in the fourth quarter of 2014.

And, adjusted EBITDA for the quarter was $63 million, versus $90.4 million in comparable period in the previous year.

Cumulus is an Atlanta-based radio broadcaster.

Blount readies meetings

Moving to the primary, Blount set a bank meeting for Tuesday in New York and one for Wednesday in London to launch its previously announced $550 million senior secured credit facility, a market source said.

The facility consists of a $75 million five-year revolver, a $300 million seven-year first-lien term loan and a $175 million euro-equivalent denominated seven-year first-lien term loan.

Commitments are due at noon ET on March 30, the source said.

Barclays, KeyBanc Capital Markets Inc. and ING Capital are leading the deal that will be used with $475 million of equity to fund the buyout of the company by American Securities LLC and P2 Capital Partners LLC for $10.00 in cash per share. The transaction is valued at about $855 million, including the assumption of debt.

Total leverage is 4.4 times, and net total leverage is 4 times, the source added.

Closing is expected in the first half of this year, subject to approvals by Blount’s shareholders and regulatory authorities, and customary conditions.

Blount is a Portland, Ore.-based manufacturer and marketer of replacement parts, equipment and accessories for consumers and professionals operating in: forestry, lawn and garden; farm, ranch and agriculture; and concrete cutting and finishing.

Diebold sets launches

Diebold emerged with plans to hold a bank meeting in New York on March 18 and a bank meeting in London on March 17 to launch a $1.3 billion-equivalent seven-year covenant-light term loan B, split between a $1.1 billion U.S. tranche and a $200 million euro-equivalent tranche, an informed source remarked.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used with $500 million of notes to help fund the acquisition of Wincor Nixdorf AG for €38.98 in cash plus 0.434 of a Diebold common share per share. This transaction values Wincor, including net debt, at about $1.8 billion.

Diebold is a North Canton, Ohio-based provider of self-service delivery, value-added services and software primarily to the financial industry. Wincor is a Paderborn, Germany-based provider of IT solutions and services to retail banks and the retail industry.

After closing, the combined company will be named Diebold Nixdorf and will be operated from headquarters in North Canton, Ohio, and Paderborn, Germany.

Western Digital coming soon

Western Digital scheduled a bank meeting for U.S. investors on Tuesday and a bank meeting in London on Wednesday to launch a $9.5 billion credit facility that includes a $1 billion five-year revolver, a $3.75 billion five-year term loan A, a $4.2 billion seven-year term loan B and a $550 million euro-equivalent denominated seven-year term loan B, according to a market source.

By comparison, in recent filings with the Securities and Exchange Commission, the company said that the term loan A was expected at $3 billion and the term loan B was expected at $6 billion.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading the deal that will be used with stock and notes to fund the acquisition of SanDisk Corp. and refinance existing debt at both companies.

SanDisk is being bought for $78.80 per share for a total equity value of about $17 billion. Assuming no closing cash shortfall, Western Digital will pay $67.50 in cash and 0.2387 shares per SanDisk share.

Closing is expected in the second quarter, subject to approval by SanDisk shareholders and Western Digital shareholders, regulatory approvals and other customary conditions.

Western Digital is an Irvine, Calif.-based developer and manufacturer of digital content storage solutions. SanDisk is a Milpitas, Calif.-based provider of flash storage solutions.

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