Emmis gets $185 million seven-year term loan, plans $20 million revolver

By Susanna Moon

Chicago, April 16 - Emmis Communications Corp. has arranged a $185 million seven-year senior secured term loan, according to a filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC is the lead arranger and bookrunner.

The company is also planning a new $20 million five-year senior secured revolving credit facility.

Proceeds will be used to finance the purchase of two radio stations for $131 million, to refinance existing debt, to provide liquidity for working capital and for general corporate purposes.

Pro forma for the full funding of the term loan, total leverage will be 4.58x based on pro forma expected EBITDA of $40.4 million for the fiscal year ending Feb. 28, 2015.

The company announced on Feb. 11 that it planned to get a new senior credit facility to help fund its acquisition of two radio stations in New York from YMF Media.

Emmis is an Indianapolis-based diversified media company, principally focused on radio broadcasting.

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