LBI Media working to refinance company's revolving credit facility

By Jennifer Lanning Drey

Portland, Ore., Aug. 14 - LBI Media, Inc. is working on refinancing its revolving credit facility, which matures in 2012, and the company expects to complete the process in the next few months, Wisdom Lu, chief financial officer of LBI, said during the company's second-quarter earnings conference call held Friday.

At June 30, LBI had $35.8 million outstanding on the $150 million facility. Since the close of the second quarter, the company has borrowed an additional $7.7 million, net of repayments, she said.

Responding to a question posed by an analyst following the company's prepared remarks, Lu said in better economic times, the company doesn't require any availability on the revolver but likes to have $50 million to $75 million "just for a rainy day."

"This has been a particularly difficult year, so we've had to dip into the line a bit more than we normally would, but in a normal year, our EBITDA clearly covers interest expense and all of our costs," Lu said.

The CFO said she considered EBITDA in a normal year to be $40 million to $45 million.

LBI posted second-quarter adjusted EBTIDA of $12.5 million, compared with adjusted EBITDA of $16.1 million in the same period of 2008. The company said the change was the result of a $4.5 million decrease in operating income and lower interest rate swap income in 2009.

Like many of its peers, the company's financial results were impacted by the widespread downturn in advertising spending that has resulted from the economic recession.

At June 30, LBI had $992 million of cash and cash equivalents and total debt of $378.2 million.

LBI Media is a Burbank, Calif., owner and operator of Spanish-language radio and television stations.

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