Bank of New York last week syndicated Millennium Radio Group's new $135 million credit facility to existing lenders and is holding a bank meeting this week to offer the credit to others. Wells Fargo Bank, GE Capital, ING and BMO Nesbitt Burns have already put in tickets, a banker said.
The credit comprises a $35 million revolver, $70 million "A" loan and $30 million "B" loan. Pricing is LIBOR plus 3% across the board, but the pro rata will have a grid. The credit is basically being syndicated to banks, but funds will be able to commit on a "B" loan-only basis, the banker added. The credit is refinancing about $87 million of funded debt that is priced in the LIBOR plus 4% range.
Millennium, a radio broadcasting company that owns stations in New Jersey, is owned by Mercury Capital Partners, UBS Capital Americas and Alta Communications.
Proceeds from the credit are also being used for an acquisition. Millennium previously made some acquisitions that were separately financed outside of the borrowing group. This refinancing is taking some of the stations recently acquired and folding them into the borrowing group and then repaying a portion of the debt that was used to acquire the stations, the banker explained.
Mercury and Alta officials and Jim Donahoe, Millennium's ceo, did not return calls. A UBS spokesman and Bank of New York banker declined comment.