Cumulus Extends Its ABL. Mary Berner Explained Why

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An indirect wholly owned subsidiary of Cumulus Media has amended its existing $100 million revolving credit facility by extending its maturity by two years.


Here’s the good news: As of Wednesday, there were no amounts outstanding under the facility.

Cumulus Media New Holdings Inc. extended the maturity of the revolving credit facility from 2025 to 2027, subject to “certain springing maturity conditions.”

Why did Cumulus make the move?

Cumulus President/CEO Mary Berner explains, “By extending the [asset-base loan] through 2027, we are locking in a long-term, favorable source of liquidity — enhancing our already strong balance sheet and increasing our financial flexibility as we continue to evolve from a one-dimensional radio broadcaster to a multi-dimensional audio media company.”

Cumulus, like iHeartMedia and Audacy Corp., is more of an audio content creation and distribution company than a traditional radio broadcasting operation, with podcasting and its Westwood One national radio arm key revenue drivers for Cumulus.

The action by Cumulus follows the expiration of a $25 million tender offer pursuant to its $50 million share buyback program. Berner says this demonstrates Cumulus’ “continuing commitment to making operational and financial decisions that enhance shareholder value.”

Investors were largely nonplussed on Thursday by the move from Cumulus, with shares trading at $11.99, up 5 cents from June 8’s closing price. CMLS, which trades on Nasdaq, is presently in the middle range of its 52-week pricing trend.

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