Regent Broadcasting, a subsidiary of Regent Communications, has scored a $150 million credit facility led by Fleet Bank that will enable the broadcasting company to acquire other companies. "We're very happy with our new facility and our ability to grow through acquisitions," said Anthony Vasconcellos, senior v.p. and cfo of Regent Communications.
Regent's previous seven-year facility was three-and-a-half years old, had been amortized down and did not give Regent the ability to reload its balance sheet, Vasconcellos explained. Regent is looking to do more acquisitions and is currently looking at several companies, he added. The credit contains an uncommitted component of $100 million, which can be tapped in the event that an extraordinary opportunity for growth presents itself, so Regent now has the flexibility to grow at a rapid rate, he explained.
The timing was also favorable in the bank loan market, noted Vasconcellos. The bank group was willing to lend to a company like Regent that is not highly levered, does have some borrowings and is looking to borrow more, he explained. "We fit right into the sweet spot of to whom banks are looking to lend," he added. The Covington, Ky.-based broadcasting company's previous facility was led by Bank of Boston. Regent considered proposals from several other media lenders, but chose Fleet because it had performed well since acquiring Bank of Boston and offered extremely competitive pricing, stated Vasconcellos.
The loan comprises a $65 million term loan and an $85 million revolver maturing in 2010. The upfront fee is 11/8% and the pricing on the facility is based on a grid tied to leverage, ranging from LIBOR plus 11/2% to LIBOR plus 3%. Regent's pricing is currently LIBOR plus 13/4%, said Vasconcellos. The other agent banks are US Bank, SunTrust Bank and Wachovia Securities. The syndicate also includes ING Bank, Wells Fargo Bank, Key Bank and Bank of New York.