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Cumulus Media’s $23 million term loan paydown completes debt reduction plan
By Rebecca Melvin
Concord, N.H., June 25 – Cumulus Media Inc. has submitted an irrevocable paydown notice to the administrative agent of the term loan to pay down $23 million of its term loan, which represents the remainder of the initial amount of the tender offer that was not validly tendered prior to the expiration date. Holders of the term loan will receive their pro rata portion of such paydown on or around June 28, according to a company news release.
The paydown represents the last piece and completion of the company’s previously announced plan to accelerate its debt reduction by paying down $175 million of debt using cash on hand.
The company is accelerating debt repayments, which will de-lever the balance sheet more quickly, reduce interest expense and further increase its free cash flow.
As previously reported, the company repaid $60 million of its ABL revolver due 2025 on May 17. That represented the entirety of the amount outstanding under the facility. Following the paydown, the ABL revolver is undrawn and available as liquidity for general corporate purposes.
The company also paid down about $89 million of its term loan credit facility due 2026 on May 25. The action was related to a mandatory prepayment obligation. About $65 million of the prepayment related to the land sale and about $23 million of the prepayment related to the tower sale.
It also launched a tender offer for its 6¾% senior secured first-lien notes due 2026 on May 26. As of the expiration of the tender offer, approximately $3 million of notes were validly tendered, accepted for payment and subsequently canceled. Giving effect to the impact of the tender offer, approximately $450 million principal amount of notes remains outstanding.
Cumulus Media is an Atlanta-based radio broadcaster.
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