Westwood One receives waiver of leverage covenants from noteholders

By Angela McDaniels

Tacoma, Wash., Oct. 15 - Westwood One, Inc. said the holders of its senior notes have agreed to waive compliance with the company's debt leverage covenants, which were to be measured on Dec. 31 on a trailing four-quarter basis.

The company in turn agreed to pay down the notes by using the proceeds of an offering and additional cash on hand, if necessary, according to an 8-K filing with the Securities and Exchange Commission.

If the proceeds of the offering are $40 million or more, the amount of notes to be paid down will be $20 million or more. Otherwise, the amount to be paid down will be $15 million.

If neither an offering of capital stock nor the proposed sale-leaseback of the company's Culver City properties occurs by March 31, the company will pay down $3.5 million of the notes.

The company also received a waiver of the debt leverage covenants from Wells Fargo Foothill for its $35 million senior credit facility, and the letters-of-credit sublimit was increased to $2 million from $1.5 million.

In the 8-K filing, the company said it reduced its projected results for the remainder of 2009 and 2010 as a result of weaker-than-expected economic conditions, including in the advertising market, which became more apparent upon the conclusion of the television upfronts in August.

New York-based Westwood One is an independent provider of network radio programming.

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