Cumulus Refinances Debt

Cumulus Media Inc. today announced the pricing of a new $525 million senior secured term loan B due March 2026. The new term loan will have an interest rate of LIBOR plus 3.75% with a 1.00% LIBOR floor, issued at 99.5% of par.

Proceeds from this issuance, along with cash on hand, will be used to pay down and refinance the Company’s existing term loan.

Upon the closing of the new term loan, which is expected next week, Cumulus will have fully refinanced the $1.3 billion term loan that the Company assumed upon emergence from Chapter 11 on June 4, 2018.

Cumulus’s debt will then consist of the $525 million new term loan and $500 million of secured bonds issued in June 2019, representing a $275 million reduction in total debt since emergence.

The Company’s financial position will be further improved by the lower interest rates and 2026 maturity of the new debt.