LBI Media gets amended, restated $175 million revolver

By Sara Rosenberg

New York, June 18 - LBI Media Inc. closed on an amended and restated $175 million revolving credit facility due Sept. 30, 2010.

Credit Suisse First Boston is the administrative agent and lead arranger on the deal.

Interest on the revolver can range from Libor plus 150 to 300 basis points, depending on total leverage (see table 1), according to an 8-K filed with the Securities and Exchange Commission on Friday. Initially, the revolver will carry an interest rate of Libor plus 250 basis points.

The revolver has a $5 million swing-loan subfacility.

There is also an option to increase the revolver by an additional $50 million under certain conditions.

Financial covenants include total leverage ratio requirements (see table 2), senior leverage ratio requirements (see table 3), interest coverage ratio requirements (see table 4), capital expenditures limitations (see table 5) and a fixed-charge coverage ratio of less than 1.05-to-1, the filing added.

Security is substantially all of the tangible and intangible assets of the company and its subsidiaries.

LBI Media is a Burbank, Calif., owner and operator of radio stations.

Table 1: Applicable interest rates

Total leverage ratio Spread over Libor

Greater than or equal to 7.00-to-1 3.00%

Less than 7.00-to-1 and greater than or equal to 6.50-to-1 2.75%

Less than 6.50-to-1 and greater than or equal to 6.00-to-1 2.50%

Less than 6.00-to-1 and greater than or equal to 5.50-to-1 2.25%

Less than 5.50-to-1 and greater than or equal to 5.00-to-1 2.00%

Less than 5.00-to-1 and greater than or equal to 4.50-to-1 1.75%

Less than 4.50-to-1 1.50%

Table 2: Total leverage ratio

Period Ratio

Closing date through Sept. 30 Not applicable

Oct. 1 through Dec. 31 7.50-to-1

Jan. 1, 2005 through Dec. 31, 2005 7.25-to-1

Jan. 1, 2006 through Dec. 31, 2006 6.75-to-1

Jan. 1, 2007 through Dec. 31, 2007 6.50-to-1

Jan. 1, 2008 through Dec. 31, 2008 6.25-to-1

Jan. 1, 2009 and thereafter 6.00-to-1

Table 3: Senior leverage ratio

Period Ratio

Closing date through Sept. 30, 2005 4.50-to-1

Oct. 1, 2005 through Dec. 31, 2006 4.25-to-1

Jan. 1, 2007 and thereafter 4.00-to-1

Table 4: Interest coverage ratio

Period Ratio

Closing date through Dec. 31 1.50-to-1

Jan. 1, 2005 through Dec. 31, 2005 1.60-to-1

Jan. 1, 2006 through Dec. 31, 2006 1.70-to-1

Jan. 1, 2007 and thereafter 1.75-to-1

Table 5: Capital expenditures

Period Amount

Fiscal year ending Dec. 31 $15 million

Fiscal year ending Dec. 31, 2005 $15 million

Fiscal year ending Dec. 31, 2006 $18 million

Fiscal year ending Dec. 31, 2007 $21 million

Fiscal year ending Dec. 31, 2008 and each fiscal year thereafter $24 million

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