Cumulus Media pays down $115 million on first-lien term loan

By Marisa Wong

Morgantown, W.Va., June 5 – Cumulus Media Inc. said it made a voluntary prepayment of $115 million on its first-lien senior secured term loan.

In the year since emerging from bankruptcy, the company has reduced its total outstanding debt by $200 million, according to a press release.

Additionally, net leverage has declined from about 5.8 times at emergence to roughly 4.8 times with this payment.

The paydown was funded by proceeds from a previously announced sale of six radio stations to Educational Media Foundation that closed on May 31 for $103.5 million in cash, as well as cash on hand generated from operations.

Cumulus added that it plans to further pay down its debt using proceeds from a previously announced asset sale. The company had entered into an agreement to sell KLOS-FM in Los Angeles to Meruelo Media for $43 million in cash. That transaction is still expected to close in the third quarter.

Cumulus Media is an Atlanta-based radio broadcaster.

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