Cumulus Media has set terms on a new $2.23 billion loan to refinance its debt, reports Reuters. The broadcaster is marketing a $200 million, five-year revolver and a $2.025 billion, seven-year first-lien term loan. The company set indicative pricing of LIB+325-350, with a 1 percent Libor floor, and a 99.5 original issue discount on the new term loan.
Cumulus plans to use the proceeds to refinance the company's current first- and second-lien loans, according to Reuters. At September 30, Cumulus had $1.24 billion outstanding on its first-lien term loan due September 2018, and $785.5 million out on its second-lien term loan due September 2019.
"It's a meaningful improvement in their annual debt service. They will save upwards of $30-35 million in interest costs which adds nicely to their free cash flow generation," Carl Salas, VP and Senior Credit Officer at Moody's Investors Services, told Reuters.