Cumulus Media has signed non-disclosure agreements with some of its creditors so the broadcast owner can discuss potentially exchanging some of its notes for revolving credit and equity.
In a filing with the Securities and Exchange Commission, the broadcast owner says the NDAs concern noteholders of its 7.75% Senior Notes due in 2019.
The company has proposed swapping each note for up to 42.5% of the principal amount of each note in certificates, which would represent interest in a trust “that would hold a participation in the company’s $200 million revolving credit facility.”
The lenders would assign their commitments to a new lender, under the proposal.
The Cumulus revolving credit facility extend its maturity to May 15, 2020, “increase its applicable LIBOR margin to 11%, subject to a 1% LIBOR floor, and increase its undrawn commitment fee to 5%, as well as separately amended to (x) modify its financial covenant to permit the borrowing under the revolving credit facility in connection with the Exchange.”
The talks have touched on the company potentially using additional capital to facilitate full participation by note holders in the exchange.