Citadel Broadcasting amends loan, changing pricing and covenants

By Sara Rosenberg

New York, March 31 - Citadel Broadcasting Corp. amended its credit facility, revising pricing and suspending certain financial covenants through 2009 while imposing new monthly covenants for that time, according to a 10-K filed with the Securities and Exchange Commission on Tuesday.

Pricing on the revolver and term loan A is now set at Libor plus 150 basis points and pricing on the term loan B is now set at Libor plus 175 bps.

The amendment also requires the company to have at least $150 million of available cash as of Jan. 15, 2010 and that the remaining convertible subordinated notes be amended by Jan. 15, 2010 to provide for a maturity date on or after Sept. 30, 2014.

As of the quarter ended March 31, 2010, the company would be required to comply with the financial leverage covenant required prior to the amendment at a rate of 7.75 to 1.0, reducing to 7.25 to 1.0 on June 30, 2010, and further reducing to 6.75 to 1.0 on Dec. 31, 2010.

The company said that based on the current economic and capital markets and the continuing decline in radio revenues, it will be difficult for it to meet these requirements in 2010, especially those commencing on Jan. 15, 2010.

The amendment was completed on March 26.

JPMorgan is the administrative agent on the deal.

Citadel is a Las Vegas-based radio broadcasting company.

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