Hubbard Radio prices $63.5 million Libor plus 350 bps delayed-draw loan at 99.5

By Paul A. Harris

Portland, Ore., Aug. 12 - Hubbard Radio LLC priced its $63.5 million add-on Libor plus 350 basis points delayed-draw term loan B due April 29, 2019 (B1/B+) at 99.5 on Monday, according to a market source.

The spread came on top of spread talk, but the discount was trimmed to half a point from earlier talk, which had the deal pricing at 99.

The loan has a 1% Libor floor and a ticking fee of half the spread for the first 30 days and the full spread thereafter.

The delayed-draw period is for eight months from close and the debt is available in two separate borrowings, subject to maximum pro forma first-lien leverage of 4.75 times.

Morgan Stanley Senior Funding Inc. is the lead bank on the debt that launched with a call on Wednesday.

Proceeds will be used to help fund the acquisition of 10 radio stations from Sandusky Radio for about $85.5 million.

Closing is expected upon Federal Communications Commission approval and other customary conditions.

Hubbard Radio is a Minneapolis-St. Paul, Minn.-based operator of radio stations.

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