BALA CYNWYD, Pa.--(BUSINESS WIRE)--Entercom Communications (NYSE:ETM) today announced that it has scheduled a bank meeting on Tuesday, October 18, 2016 to launch a refinancing of all of its existing senior and senior unsecured debt. The Company expects to enter into a new $520 million senior secured credit facility composed of a $60 million revolving credit facility with a 5 year maturity and a $460 million term loan B with a 7 year maturity. The transaction will be led by Bank of America Merrill Lynch, Morgan Stanley Senior Funding, Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC as joint lead arrangers and bookrunners.
The Company expects to use substantially all of the proceeds of the term loan to: (i) refinance its existing senior secured bank debt of $225 million; (ii) call its $220 million in 10.5% senior subordinated notes, including the related call premium; and (iii) pay transaction fees and expenses. The Company’s Series A Perpetual Convertible Preferred Stock will not be redeemed as part of this transaction and will remain outstanding.
As of September 30, 2016, the Company had $443.6 million of senior debt, capital leases and senior notes and $9.9 million in cash. In addition, the Company had $27.7 million in perpetual cumulative convertible preferred stock including accrued dividends.
Note Regarding Forward-Looking Statements
The information in this news release is being widely disseminated in accordance with the Securities and Exchange Commission's Regulation FD.
This news announcement contains certain forward-looking statements that are based upon current expectations and certain unaudited pro forma information that is presented for illustrative purposes only and involves certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Additional information and key risks are described in the Company’s filings on Forms 8-K, 10-Q and 10-K with the Securities and Exchange Commission. Readers should note that these statements might be impacted by several factors including changes in the economic and regulatory climate and the business of radio broadcasting, in general. The unaudited pro forma information and same station operating data reflect adjustments and are presented for comparative purposes only and do not purport to be indicative of what has occurred or indicative of future operating results or financial position. Accordingly, the Company’s actual performance may differ materially from those stated or implied herein. The Company assumes no obligation to publicly update or revise any unaudited pro forma or forward-looking statements.
Entercom Communications Corp. (NYSE: ETM) is the fourth-largest radio broadcasting company in the U.S., reaching and engaging more than 40 million people a week through its 124 highly rated stations in 27 top markets across the country. Entercom is a purpose-driven company, deeply committed to entertaining and informing its listeners with the best locally curated music, news, sports, and talk content, driven by compelling local personalities. Entercom delivers superior ROI by connecting its customers and audiences through its leading local brands and unparalleled local marketing solutions, which include over 4,000 events each year, and its SmartReach Digital product suite. Learn more about Philadelphia-based Entercom at www.Entercom.com, Facebook and Twitter (@entercom).