Millennium Radio has tapped UBS and Bank of New York for a $175 million senior secured credit facility to refinance the company's existing debt and fund a distribution to equity holders. GE Capital committed late last week to be a documentation agent.
The leads held a bank meeting in New York City last Thursday to launch syndication of the financing that consists of a six-year, $15 million revolver; a six-year, $120 million first-lien term loan "B" and a seven-year, $40 million second-lien term loan, according to a banker. Price talk is in the range of LIBOR plus 2 1/2-2 3/4% for the first lien and LIBOR plus 5 1/2-5 3/4% for the second lien.
The financing will be used to back Millennium Radio's recapitalization plan, which includes refinancing all the company's outstanding debt and a distribution to equity holders. In 2004 the company received $135 million of bank debt; a $35 million revolver, a $70 million term loan and a $30 million term loan. The size of the dividend could not be determined.
Millennium agreed to buy five New Jersey radio stations for $90 million from Nassau Broadcasting Partners in June. The Lawrenceville, N.J.-based company specializes in radio broadcasting with operations across New Jersey. Millennium Radio Group was formed by UBS Capital Americas and Mercury Capital Partners to acquire broadcast radio stations in mid-to-large size markets in the U.S.
Calls to Michael Greene of UBS Capital Partners and Teo Balbach of Mercury Capital were not returned. A representative from Millennium could not be reached.