The Atlanta, Georgia-based company is marketing a $200 million, five-year revolver and a $2.025 billion, seven-year first-lien term loan. The company set indicative pricing of LIB+325-350, with a 1 percent Libor floor, and a 99.5 original issue discount on the new term loan.
Proceeds will refinance the company's current first- and second-lien loans. At September 30, Cumulus had $1.24 billion outstanding on its first-lien term loan due September 2018, and $785.5 million out on its second-lien term loan due September 2019.
The existing first-lien term loan carries a spread of LIB+350 with a 1 percent Libor floor, while the second-lien term loan pays LIB+600 with a 1.5 percent Libor floor.
Cumulus is back after repricing its first-lien term loan a year ago. With this proposed transaction, the company is trying to lower costs on its first-lien loans and taking out higher-cost second-lien loans.
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