While reports that several giant radio companies are wrestling with loans and might be facing bankruptcy proceedings of some kind
, Cumulus reports that they have been able to adjust their payments and are okay for now...Here is their current press release
Cumulus Media Inc. (NASDAQ: CMLS) (the “Company”) today announced that
it has entered into an amendment to its senior secured credit facility,
which was overwhelmingly approved by the lenders. The amendment provides
the Company with compliance relief from its principal financial
covenants, including leverage and fixed charge ratios, until March 31,
Chairman, President and Chief Executive Officer, Lew Dickey, commented,
“We value the partnership with our lenders and appreciate their
constructive approach that enables us to operate through the current
economic environment. It was a mutually beneficial outcome for our
lenders and shareholders.”
Under the amendment, the Company will be required through December 31,
2010 to maintain minimum liquidity and consolidated EBITDA levels.
Further details concerning the amendment will be contained in a current
report on Form 8-K to be filed by the Company with the Securities and
In connection with the amendment, the Company has voluntarily prepaid
$32.5 million of the outstanding principal amount of the term loan, so
that as of June 29, 2009, the Company had outstanding borrowings of
approximately $647.9 million under the senior secured credit facility.
In addition, the Company has agreed to issue warrants to the lenders who
consented to the amendment exercisable for an aggregate of 1,250,000
shares of the Class A common stock of the Company.
The Company’s sole financial advisor in connection with the amendment
was Citadel Securities, a division of Citadel Derivatives Group LLC.
The Company is the second largest radio broadcaster in the United States
based on station count, and combined with its affiliate, CMP Media
Partners, LLC, the Company is the fourth largest radio broadcast company
in the United States based on net revenues, controlling approximately
350 radio stations in 68 U.S. media markets (www.cumulus.com).