Entercom Communications Corp. Announces Bank Meeting and Proposed Debt Refinancing
October 17 2016 - 4:30PM
Business Wire
Entercom Communications (NYSE:ETM) today announced that it has
scheduled a bank meeting on Tuesday, October 18, 2016 to launch a
refinancing of all of its existing senior and senior unsecured
debt. The Company expects to enter into a new $520 million senior
secured credit facility composed of a $60 million revolving credit
facility with a 5 year maturity and a $460 million term loan B with
a 7 year maturity. The transaction will be led by Bank of America
Merrill Lynch, Morgan Stanley Senior Funding, Inc., RBC Capital
Markets, LLC and Wells Fargo Securities, LLC as joint lead
arrangers and bookrunners.
The Company expects to use substantially all of the proceeds of
the term loan to: (i) refinance its existing senior secured bank
debt of $225 million; (ii) call its $220 million in 10.5% senior
subordinated notes, including the related call premium; and (iii)
pay transaction fees and expenses. The Company’s Series A Perpetual
Convertible Preferred Stock will not be redeemed as part of this
transaction and will remain outstanding.
As of September 30, 2016, the Company had $443.6 million of
senior debt, capital leases and senior notes and $9.9 million in
cash. In addition, the Company had $27.7 million in perpetual
cumulative convertible preferred stock including accrued
dividends.
Note Regarding Forward-Looking
Statements
The information in this news release is being widely
disseminated in accordance with the Securities and Exchange
Commission's Regulation FD.
This news announcement contains certain forward-looking
statements that are based upon current expectations and certain
unaudited pro forma information that is presented for illustrative
purposes only and involves certain risks and uncertainties within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Additional information and key risks are described in the
Company’s filings on Forms 8-K, 10-Q and 10-K with the Securities
and Exchange Commission. Readers should note that these statements
might be impacted by several factors including changes in the
economic and regulatory climate and the business of radio
broadcasting, in general. The unaudited pro forma information and
same station operating data reflect adjustments and are presented
for comparative purposes only and do not purport to be indicative
of what has occurred or indicative of future operating results or
financial position. Accordingly, the Company’s actual performance
may differ materially from those stated or implied herein. The
Company assumes no obligation to publicly update or revise any
unaudited pro forma or forward-looking statements.
About Entercom
Entercom Communications Corp. (NYSE: ETM) is the fourth-largest
radio broadcasting company in the U.S., reaching and engaging more
than 40 million people a week through its 124 highly rated stations
in 27 top markets across the country. Entercom is a purpose-driven
company, deeply committed to entertaining and informing its
listeners with the best locally curated music, news, sports, and
talk content, driven by compelling local personalities. Entercom
delivers superior ROI by connecting its customers and audiences
through its leading local brands and unparalleled local marketing
solutions, which include over 4,000 events each year, and its
SmartReach Digital product suite. Learn more about
Philadelphia-based Entercom at www.Entercom.com, Facebook and
Twitter (@entercom).
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version on businesswire.com: http://www.businesswire.com/news/home/20161017006489/en/
Entercom CommunicationsSteve FisherExecutive
Vice President and
CFO610-660-5647sfisher@entercom.com
Entercom Communications (NYSE:ETM)
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