Dial Global Announces Credit Recapitalization
March 4, 2013

Dial Global announces it has negotiated a recapitalization of its existing credit facilities and other obligations and equity interests with its lenders and certain of its stockholders, slated to become effective on or around of April 16.

Dial Global CEO Spencer Brown stated, "The new agreements with our lenders represent a significant step forward for the Company. Once these transactions close, we will have delevered our balance sheet and decreased cash interest expense. The agreements will provide us with greater flexibility to actively manage and grow our business. We look forward to closing these transactions in April and focusing on serving our clients."

As part of the recapitalization, Dial Global has entered into an Amended and Restated Credit Agreement, by and among the Company, General Electric Capital Corporation, as administrative agent and collateral agent, and the lenders party thereto, which provides for a $15 million paydown of the company's existing term loan and revolving credit commitments. The maturity date under the First Lien Credit Agreement is October 21, 2016. 

Dial Global also entered into a Priority Second Lien Credit Agreement among the Company, the administrative agent, the syndication agent and the lender party thereto, pursuant to which such lender agreed to invest an additional $31.5 million through a term loan facility to the Company, with a maturity date of July 21, 2017. In connection with such lender's agreement to extend credit under the Priority Second Lien Credit Agreement, the company agreed to issue it penny warrants to purchase 7.5 percent of the company's common stock exercisable immediately following the consummation of the recapitalization. The effectiveness of each credit agreement is subject to the satisfaction of certain conditions.

The lenders under the company's existing Second Lien Credit Agreement, dated as of October 21, 2011 agreed, subject to the satisfaction of specified conditions, to restructure their existing approximately $93 million in second lien obligations by amending and restating the Second Lien Credit Agreement to provide for a $30 million term loan that matures five years after the expected closing of the recapitalization and exchanging approximately $63 million in remaining obligations under the existing Second Lien Credit Agreement for a new series of preferred stock of the Company. As part of these agreements, these holders of preferred stock will be granted certain corporate governance rights. The company also agreed to issue the 2L lenders for nominal consideration warrants to purchase 12 percent of the company's common stock in connection with the exchange of a portion of the existing second lien obligations for preferred stock, which warrants will be exercisable at various dates after the recapitalization if the company does not retire the $30 million second lien term loan and the preferred stock held by such 2L lenders prior to the specified dates.

Under various subscription and exchange agreements between the company and the holders of the company's PIK Notes and Series A Preferred Stock, such holders have agreed, subject to the satisfaction of certain specified conditions, to exchange their PIK Notes and Series A Preferred Stock for equity securities of the company and have further agreed to make an additional equity infusion of $16.5 million.




 
Breaking News
Study: The Infinite Dial 2015
More Speakers Added To The Conclave
March 4, 2015
Verve Music Group Promotes Mike Rittberg To General Manager
More Speakers Added To The Conclave
March 4, 2015
Nielsen Acquires eXelate
iHeartMedia Receives Five Stevie Awards For Sales, Customer Service
Coleman Insights To Host New Music Webinar: When Is A Hit A Hit?
In Brief - March 4, 2015
March 3, 2015
Cumulus Names New Programming Leadership In L.A. And Minneapolis
Republic Records And IM Global Announce Multi-Picture Co-Production Pact
2015 NAB Show To Feature FCC Commissioners
Warner Music Group Names James Steven EVP/Communications & Marketing
Entravision Appoints Maria Lopez-Knowles Chief Marketing Officer
Kane Show, Maroon 5 Show Support For Fan
Rick Krim Tapped As Sony/ATV Co-President, U.S.
Courtney Lowery Upped To VP/Publicity At Epic Records
In Brief - March 3, 2015
March 2, 2015
Ipsos Research Study Highlights Continued Strength Of AM/FM Radio In Cars
Cumulus Reports Operating Results For Fourth Quarter And Full Year 2014
KYSR Names Andrew Harms APD/MD/Afternoon Host
Chad Lopez Appointed VP/Market Manager For Cumulus New York
iHeartMedia Names Colleen Valkoun Market President For Madison And Milwaukee
Cumulus Ups Donna Baker To Midwest RVP, Peter Bowen Named Chicago VP/MM
Triton Digital Partners With Edison Research To Deliver Podcast Measurement Technology
Cumulus Taps Jon Lurie As PD At KMGA
In Brief - March 2, 2015
Music News
Rapper Big Sean Debuts At #1 On Billboard 200
Quick Hits: Shania Twain, BET Experience, Rock In Rio USA, Wilco, Brian Wilson
Kelly Clarkson Takes Piece By Piece On the Road
Quick Hits: Metallica, My Morning Jacket, Flo Rida, Modest Mouse, Led Zeppelin
Madonna Unveils Rebel Heart Tour
Mumford & Sons Get Wilder On Third LP
Quick Hits: Kanye West, Stone Sour, Radio Disney Music Awards, Lollapalooza Berlin, Bestival
All Apologies From Kanye West
The Week In Review: 2/23-2/27
FMQB Retro-Active: Aerosmith's Joey Kramer Talks Donington DVD, The Beatles, and Rockin and Roastin Coffee
Quick Hits: Mumford & Sons, Madonna, Beale Street Music Festival, Tool
Ed Sheeran, Sam Smith Rule BRIT Awards
Quick Hits: Foo Fighters, Carly Rae Jepsen, The Airborne Toxic Event, Echosmith, Finding Neverland Album with John Legend & Rita Ora
Imagine Dragons Roar To Top Debut
Quick Hits: U2, Firefly Festival, Nico & Vinz, Lady Gaga, Three Days Grace, Free Press Summer Festival
FMQB NOW

Rob Roberts
OM/Cumulus Atlanta

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!