According to an SEC filing by Cumulus Media, the company has amended its existing credit agreement. Bank of America has resigned as administrative agent for the senior lenders and been replaced by GE Capital.
Other changes indicate that Cumulus Media might be looking to buy out its majority partners in Cumulus Media Partners – the privately held large market radio group – at some point. Here is what Cumulus Media said in the brief SEC filing after noting the change in lead lenders:
“In addition, the amendment grants the Company additional flexibility under the Credit Agreement to, among other things, (i) consummate an asset swap of the Company’s radio stations in Canton, Ohio for radio stations in the Ann Arbor, Michigan and Battlecreek, Michigan markets owned by Capstar Radio (and currently operated by the Company pursuant to local marketing agreements); (ii) subject to certain conditions, acquire up to 100% of the equity interests of the Company’s affiliate, Cumulus Media Partners, LLC (“CMP”) or two of its subsidiaries, CMP Susquehanna Holdings Corp. or CMP Susquehanna Radio Holdings Corp.; (iii) subject to certain conditions and if necessary in order that certain of CMP’s subsidiaries maintain compliance with applicable debt covenants, make further equity investments in CMP, in an aggregate amount not to exceed $1.0 million; and (iv) enter into sale-leaseback transactions with respect to communications towers that have an aggregate fair market value of no more than $20.0 million, so long as the net proceeds of such transaction are used to repay indebtedness under the Company’s term loan facility.”