Entercom Note Offering More Popular Than Anticipated


Three days ago, Entercom Communications revealed that it planned to offer $300 million in aggregate principal amount of senior secured second-lien notes due 2027.

It turns out the offering is oversubscribed, indicating strong investor demand.

How did Wall Street react on Thursday morning? At the Closing Bell on Wall Street, Entercom was at $6.40, off 5 cents from Wednesday.

That could be a minor blip in the long run, as B. Riley FBR recently became the latest fan of Entercom, declaring that its shares were “mispriced.”

This could have played a positive role in Entercom’s late Wednesday notice that what is officially “Entercom Media Corp.” — the former CBS Radio acquired in the Reverse Morris Trust-fueled merger — has priced $325 million in aggregate principal amount of 6.5% senior secured second-lien notes due 2027.

The sale of the notes is expected to close on Tuesday (4/30).

Net proceeds of the offering, along cash on hand and availability under its revolving credit facility, will be used to partially repay existing indebtedness under Entercom’s senior secured term loan facility.

With a 1-year target price of $8.75, Entercom has had a bumpy year-to-date, rising to $7.65 on February 20 before a slide bringing ETM to $5.24 on March 28.

Entercom stock has been largely on the rise since then.