Cumulus Media announced that it has entered into an amendment to its senior secured credit facility for the third time, with overwhelming approval by its lenders. The company said the amendment provides it with compliance relief from its principal financial covenants, including leverage and fixed charge ratios, until March 31, 2011.
“We value the partnership with our lenders and appreciate their constructive approach that enables us to operate through the current economic environment. It was a mutually beneficial outcome for our lenders and shareholders,” said Cumulus CEO Lew Dickey.
Cumulus provided this information about the terms of its deal with the lenders:
“Under the amendment, the Company will be required through December 31, 2010 to maintain minimum liquidity and consolidated EBITDA levels. Further details concerning the amendment will be contained in a current report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.
In connection with the amendment, the Company has voluntarily prepaid $32.5 million of the outstanding principal amount of the term loan, so that as of June 29, 2009, the Company had outstanding borrowings of approximately $647.9 million under the senior secured credit facility. In addition, the Company has agreed to issue warrants to the lenders who consented to the amendment exercisable for an aggregate of 1,250,000 shares of the Class A common stock of the Company.”
Cumulus said its sole financial advisor in connection with the amendment was Citadel Securities, a division of Citadel Derivatives Group LLC.