Arbitron refinances $150 million revolver at Libor plus 105-140 bps

By Susanna Moon

Chicago, Nov. 22 - Arbitron Inc. closed a $150 million five-year unsecured revolving credit facility on Monday with J.P. Morgan Securities LLC as bookrunner and lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loan is Libor plus 105 basis points to 140 bps, based on leverage.

The total commitments may be increased to up to $225 million, and the facility includes $20 million for swingline loans and $20 million for issuing letters of credit.

Proceeds will be used for working capital requirements and general corporate purposes, which may include refinancing its credit facility, permitted acquisitions and share repurchases.

Negative covenants include covenants that require the company to maintain leverage and interest coverage ratios, and restrict the ability of the company to incur debt, incur liens, sell or otherwise dispose of assets, including capital stock of subsidiaries, enter into mergers or consolidations, enter into transactions with affiliates and use proceeds of borrowings under the agreement for other than permitted uses.

The credit agreement expires on Nov. 21, 2016.

JPMorgan Chase Bank, NA is administrative agent, and U.S. Bank NA and Citibank, NA are co-syndication agents.

The facility replaces Arbitron's $150 million revolver set to mature in December, according to a company press release.

Arbitron is a media and marketing research firm based in Columbia, Md.

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