Endurance Business Media is refinancing its bank loans and taking a dividend for sponsor Kelso & Co. after a strong 2004. Wachovia Securities is leading the new deal, which comprises a $20 million revolver at LIBOR plus 3 1/2% over six years and a $100 million term loan 'B' priced at LIBOR plus 3 1/4% over seven years. The old loan consisted of a $50 million term loan and a $25 million revolver.
The $20 million revolver will allow the real estate magazine publisher to continue to grow as it eyes potential purchases, said Blair Schmidt-Fellner, ceo. "Kelso thought we had done so well, that even if they took a distribution for the investors, the company would still not be overleveraged," he said.
In January 2004, the company took out the initial loan to purchase Prince Communications, which publishes Homes & Land Magazine and Rental Guide. Wachovia led that deal, and Bank of Montreal and Harris Nesbitt served as the syndication agents. "There are some old banks that have been media lenders to Gerry Hogan [his business partner] and myself, and we'd love to see them involved," Schmidt-Fellner said. "We understand the financial dynamics of the loan have changed and it has to be something they want to do."
Prior to purchasing Prince, Endurance was looking for three things in a lead bank. It must offer good terms, have a strong knowledge of the media industry and make good partners. Wachovia fit all three bills, Schmidt-Fellner said. "They were smart and a pleasure to work with," he explained.
Endurance was formed in 2001 by Schmidt-Fellner and Hogan, but sat as a holding company until the purchase of Prince. Kelso became majority owner last year. Currently in 223 markets, Schmidt-Fellner said the company is looking at expansion in about 100 markets.