Citadel Broadcasting Corporation announced Friday that it intends to sell $500 million of new senior notes due 2018.
Citadel said it plans to use the proceeds to pay down debt under its current credit facility and will enter into a new credit facility concurrently with the offering.
Citadel extinguished $1.4 billion of debt in its Chapter 11 bankruptcy reorganization and emerged with $762.5 million of debt in a senior secured term loan due in 2015. That debt was rated Ba2 – two notches below investment grade – by Moody’s Investors Service in August.
The new notes will be senior unsecured obligations of Citadel and will be guaranteed by certain of Citadel’s existing and future wholly-owned US subsidiaries, the company said of the half billion dollar offering, which will be made only to qualified institutional investors.
