Cumulus moves forward


Cumulus Media has amended its credit agreement with its lending group, led by Bank of America, in preparation for the pending transaction to take the company private as the family of CEO Lew Dickey and Merrill Lynch Global Private Equity buy out the public shareholders of Cumulus Media. The amended loan agreement would allow for the change in ownership and sets out spreads for various leverage ratios.

RBR/TVBR observation:
The stock price for Cumulus remains way, way below the buyout price of $11.75 per share announced last July. If Clear Channel’s long-pending buyout does get to closing soon, perhaps as early as this week, Wall Street should start getting more confident about the Cumulus deal. However, with no shareholder vote even scheduled yet, doubts will remain about what the buyout price will be by the time it gets to closing.