Bull Run Corp. refinanced its credit facility in late July, reducing it to $119 million from $130 million and extending the maturity to July 2002. Frederick Erickson, v.p. finance and cfo, said the company reduced the size of its credit facility because it had paid off outstanding debt. The deal will fund the company's operations. The original deal, signed in 1999, financed the acquisition of Host Communications, a sports marketing business. Erickson said cash flow covenants were "simplified" and that pricing has increased with the new deal as the company experienced a tougher market this time around. He declined to be more specific. Atlanta-based Bull Run, through Host Communications, provides multimedia, promotional and event management services support to universities, athletic conferences, associations and corporations.
The company opted to stay with original lender Bank of America, rather than go out to bid. "We have a good relationship with our bank group," Erickson said. He declined to give the company's EBITDA, saying he couldn't project earnings. "I can't speak to the results. It has been a difficult year in business, but we expect there to be a turnaround," he said. "It goes back to advertisers; the economy has had an impact on the extent to which companies are willing to spend." Erickson says while the company's strategy hasn't changed, Bull Run, through Host Communications, did secure an 11-year contract with CBS to provide services to the NCAA.