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Wednesday, October 19, 2016

Entercom Refinances $520M In Debt

As Entercom Communications Corp. has agreed to acquire four radio stations in North Carolina from Beasley Broadcast Group, the Bala Cynwyd, PA-based company is launching a refinancing of all of its existing senior and senior unsecured debt.

According to the Philly Business Journal, the company expects to enter into a new $520 million senior secured credit facility composed of a $60 million revolving credit facility with a five year maturity and a $460 million term loan B with a seven year maturity.

The two news items – both announced Tuesday morning – do not appear to be directly connected. Entercom said it plans to use the proceeds from the debt offering to refinance its existing $225 million in senior secured bank debt; call its $220 million in 10.5 percent senior subordinated notes; and pay transaction fees and expenses.

As part of the Charlotte, North Carolina station deal, Entercom will acquire The Fan WFNZ 610 AM, The Link WLNK 107.9 FM and news/talk WBT 1110 AM/99.3 FM — all of which are currently owned by Greater Media and held in trust pending the completion of Beasley’s acquisition. Entercom will also acquire Beasley’s WFNZ-AM in Charlotte and an FM translator. The transaction is set to close late in the fourth quarter or early first quarter.

The acquisition provides Entercom with a new position in the Charlotte market while strengthening its existing Carolina presence alongside its Greensboro, North Carolina and Greenville, South Carolina clusters. The new station cluster is the radio broadcast home of the Carolina Panthers and the Charlotte Hornets.

This was Entercom’s first deal since it completed the $105 million acquisition of 15 radio stations from Lincoln National Corp. in the Atlanta, Denver, Miami and San Diego markets last summer.

Beasley intends to use the net proceeds from the sale of the four stations to reduce the borrowings required to complete the $240 million Greater Media transaction, which includes four Philadelphia properties: rock station WMMR 93.3 FM, classic rock station WMGK 102.9 FM , Adult Hits WBEN 95.7FM and sports talk station WPEN 97.5 FM The Fanatic. That deal is set to close later this month and involves a total of 21 stations.

Beasley already owns in the market — sports talker WTEL 610 AM and talk station WWDB 860 AM.


Entercom is the fourth-largest radio broadcasting company in the U.S., with 124 stations in 28 markets.

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