Entercom selling a quarter billion of senior notes


Entercom is moving on the $645 million refinancing reported last week. The radio group owner is selling $250 million of senior notes due 2019.

As previously reported, Moody’s Investors Service gave the issue a Caa1 rating – definitely in the high-yield or junk-bond arena. The senior notes are the lowest ranking in priority of the three chunks of debt in the refi. Moody’s assigned Ba3 ratings to the $50 million 1st Lien Senior Secured Revolver and the $345 million 1st Lien Senior Secured Term Loan B.

The notes, to be sold in a private placement, “will be guaranteed by Entercom and all of Entercom Radio’s existing and future domestic, restricted subsidiaries that guarantee Entercom Radio’s debt under the new credit facilities to be entered into at the time of the closing of the offering, other than Entercom Radio’s subsidiaries that hold no material assets other than Entercom’s FCC licenses, which will guarantee the Notes on a senior subordinated basis,” said the company’s announcement.
“Entercom Radio intends to use the net proceeds from the offering, together with initial borrowings under the New Credit Facility and cash and cash equivalents, to repay its existing senior secured credit facilities, to pay fees and expenses in connection with the offering and the New Credit Facility and for general corporate purposes,” Entercom said.