Cumulus Media to repay debt with proceeds from sale of six stations

By Sarah Lizee

Olympia, Wash., Feb. 13 – Cumulus Media Inc. plans to pay down debt using proceeds from a proposed sale of six of its radio stations, according to a press release.

The company said it entered into an agreement to sell the stations to Educational Media Foundation for $103.5 million in cash.

In a related transaction, Cumulus plans to swap three of its stations with Entercom Communications Corp.

“These transactions are consistent with our portfolio optimization strategy and both deals are accretive,” Mary G. Berner, president and chief executive officer of Cumulus Media, said in the release.

“The Entercom swap significantly bolsters our competitive position in Indianapolis and the EMF transaction generates substantial cash for debt repayment and investment in other business opportunities.”

Both transactions are subject to customary closing conditions, including regulatory approval, and are expected to close during the second quarter of 2019.

As previously reported, Cumulus emerged from bankruptcy last summer with its total debt balance consisting only of a $1.3 billion term loan that bears interest at Libor plus 450 basis points and matures on May 15, 2022.

In October, the company repaid $50.2 million of the loan. At that time, the company said it had a $50 million revolver that was undrawn.

Cumulus Media is an Atlanta-based radio broadcaster.

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