Westwood amends first-, second-lien credit terms to tighten covenants

By Susanna Moon

Chicago, Nov. 10 - Westwood One, Inc. amended its first- and second-lien credit agreements on Monday, requiring the company to adhere to stricter covenants, according to an 8-K filed with the Securities and Exchange Commission.

Under the new terms, after an acquisition, the company must maintain liquidity of $10 million and maintain a consolidated leverage ratio of at least 0.25 times less than the level otherwise required for the most recently completed fiscal quarter.

The amendments also cap the amount of pro forma adjustments to consolidated EBITDA that the company can claim as a result of, or in connection with, a permitted acquisition at 25% of the consolidated EBITDA of the target company.

Westwood amended its first-lien credit agreement with General Electric Capital Corp. as administrative agent and collateral agent. ING Capital LLC is the syndication agent.

The company amended its second-lien credit agreement with Cortland Capital Market Services LLC as administrative agent and the collateral agent. Macquarie Capital (USA), Inc. is the syndication agent.

Westwood One, based in New York, is an independent provider of radio programming.

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