A Beasley Broadcast Group subsidiary known as “Beasley Mezzanine Holdings” on Friday (11/17) entered into a new credit agreement with U.S. Bank that gives it access to $245 million.
The term loan facility is valued at $225 million, while a revolving credit facility is valued at $20 million.
This is a “new debt to repay old debt” deal. The new credit facilities are secured by Beasley’s assets.
The Term Loan Facility matures on Nov. 1, 2023 and will amortize in quarterly installments in aggregate annual amounts equal to 1% of the original principal amount of the Term Loan Facility.
The first amortization payment is due at the end of the first full fiscal quarter after the Closing Date; the remaining balance of the original principal amount of the Term Loan Facility outstanding at maturity will be paid in a final balloon payment.
The Revolving Credit Facility terminates on the fifth anniversary of the Closing Date and loans thereunder may be borrowed, repaid, and reborrowed up to such date.
Loans under the New Credit Facilities will, at the borrower’s option, bear interest at either LIBOR plus 4% or base rate plus 3%.
Solely with respect to the Term Loan Facility incurred on the Closing Date, LIBOR is subject to a 1.00% floor and base rate is subject to a 2.00% floor.
With respect to the revolving credit facility, base rate is subject to a 0.00% floor. Interest payments are, for loans based on LIBOR, due at the end of each applicable interest period unless such interest period is longer than three months, in which case they are due at the end of each three month period. Interest payments for loans based on the base rate, are due quarterly.
Under certain circumstances described in the credit agreement, Beasley may increase the new credit facilities, so long as Beasley does not exceed a maximum first lien leverage ratio of 4.00:1.00, plus an additional $56.8 million.
The New Credit Facilities are subject to customary negative covenants as well as a financial covenant that is a maximum first lien net leverage ratio (subject to a $20 million cap on cash netting) that will be tested at the end of each fiscal quarter, starting with Q4 2017.