Westwood One found J.P. Morgan and Bank of America to be "particularly hungry" to lead the company's new $300 million credit facility, according to Andrew Zaref, Westwood's cfo. "They did a great job. The deal was completed somewhat expeditiously without any detriment to our time and business," Zaref said. "It was a very easy deal. [The banks were] very efficient, which to me as management is very important." Zaref could not name the previous lead but said J.P. Morgan and B of A are new relationships to the company.
The new facility is made up of a $180 million revolver and $120 million "A" loan. It is larger than the company's previous facility, extends out for a five-year term and provides liquidity that can be used for strategic opportunities in the future, Zaref noted. The facility is priced at LIBOR plus 68 basis points. "The [old facility] expired in September, so we decided to take advantage of the current market rate environment and some favorable pricing and go ahead and do it now," Zaref said. "Pricing was in our favor. I think the overall level of activity in the marketplace was low, which was favorable to us. There were a lot of banks who became very interested in us." Westwood produces and distributes radio programming. The company generates a lot of cash flow and is usually under-levered, Zaref noted.