By Lisa Kerner
Charlotte, N.C., May 31 - Some Emmis Communications Corp. subsidiaries closed on a financing in the form of an $82.2 million promissory note on Wednesday with Wells Fargo Bank Northwest, NA and Teachers Insurance and Annuity Association of America (TIAA).
The 4.1% note will mature on Aug. 1, 2024 and is secured by, among other things, an equity pledge agreement and a security agreement, according to an 8-K filing with the Securities and Exchange Commission.
Under a participation agreement, Wells Fargo sold to TIAA a 100% participation interest in the note issued by a special-purpose subsidiary and one of its subsidiaries formed to hold the Federal Communications Commission license for WEPN(FM) (f/k/a WRKS(FM)), 98.7 FM, New York.
Proceeds were used by the subsidiary to pay transaction expenses, to pay a dividend to some Emmis entities for purposes of debt reduction and for general corporate purposes.
About $74.7 million of the net proceeds were used to repay debt under the senior credit agreement of Emmis Operating Co., including all amounts then outstanding under its revolver, the filing said.
Emmis is an Indianapolis-based diversified media company.
| Issuers: | Emmis Communications Corp. subsidiaries
|
| Issue: | Promissory note
|
| Amount: | $82.2 million
|
| Maturity: | Aug. 1, 2024
|
| Coupon: | 4.1%
|
| Settlement date: | May 30
|
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