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.