A Discounted Prepayment Helps Cumulus Trim $1.3B Loan

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Cumulus Media announced following Thursday’s Closing Bell on Wall Street that it has completed a discounted prepayment of a portion of its $1.3 billion senior secured term loan facility due May 2022.


Cumulus successfully purchased $50.2 million aggregate principal amount of term loans under the Facility for $50 million, a discount to par value of 0.40%. The transaction closed Thursday (10/11) and was funded with cash from operations.

As of the closing of this transaction, the $50 million revolving credit facility remains undrawn.

Cumulus says it will recognize a one-time non-operating gain of approximately $200,000 in its Q4 2018 earnings, and the company’s annual interest expense will be reduced, as a result of this transaction.


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