Cumulus Media Inc. priced a new $525 million senior secured term loan B due March 2026.
The term loan, which is expected to close next week, will have an interest rate of Libor plus 3.75% with a 1.00% Libor floor, issued at 99.5% of par.
Upon closing, Cumulus will have fully refinanced the $1.3 billion term loan that it assumed upon emergence from Chapter 11 on June 4, 2018. The company's debt will then consist of the $525 million new term loan and $500 million of secured bonds issued in June, representing a $275 million reduction in total debt since emergence, according to a Sept. 18 company release.
Cumulus plans to use the proceeds from this issuance, along with cash on hand, to pay down and refinance the company's existing term loan.
