Wall Street was quite receptive to the sale of $610 million in bonds by Cumulus Media to help finance its acquisitions of CMP Media and Citadel Broadcasting.
The issue of senior notes due 2019 priced with a coupon of 7.75%. The proceeds will be used to pay down current debt. Cumulus has an extensive financial package put together which will, in total, assemble a radio company worth over $4 billion. More than $2 billion is coming from bank loans, so only a relatively modest bond offering was required.
