Ackerley Group receives waiver to credit facility

By Sara Rosenberg

New York, May 31 - The Ackerley Group Inc. entered into a limited waiver of certain financial covenants of its credit facility Friday. The waiver expires on July 31, according to a filing with the Securities and Exchange Commission.

Under the waiver agreement, the Seattle, Wash. media and entertainment company is unable to access its revolver until July 31. In addition, if the company's merger with Clear Channel Communications Inc. falls through then the outstanding principal under the credit agreement will accrue interest at an extra 2% per annum, with the interest rate retroactive to April 1, 2002, according to the filing. In return for receiving the waiver, the company has to pay a fee of 25 basis points of the principal amount outstanding to the lenders.

Credit Suisse First Boston is the administrative agent for the existing credit facility and General Electric Capital Corp. is the co-arranger and syndication administrative agent for the loan.

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