JPMorgan and Bank of America are leading a $700 million refinancing for radio broadcaster, Cumulus Media. The facility consists of a seven-year, $350 million revolver and a seven-year, $350 million "A" loan. Pricing on both tranches is LIBOR plus 1 1/4%. The new deal will replace the company's existing $675 million credit line which carries higher pricing.
Moody's Investors Service assigned a Ba2 rating to the proposed tranches. The rating agency believes Cumulus has improved its credit profile and operating performance.
The ratings reflect Cumulus' strong presence, geographic diversity and willingness to use equity to finance acquisitions and reduce leverage, Moody's continued. The company has 305 stations in 61 mid-size markets. Martin Gausvik, executive v.p., cfo and treasurer, did not return a call.