Entercom enters into $60 million five-year revolver via Bank of America

By Tali Rackner

Norfolk, Va., Nov. 2 – Entercom Communications Corp. wholly owned subsidiary Entercom Radio LLC entered into a new $60 million five-year revolving credit facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Interest is equal to Libor plus 350 basis points with step-downs based on the consolidated leverage ratio. The commitment fee is 50 bps.

The revolver matures on Nov. 1, 2021.

The company’s $540 million credit facility also contains a $480 million term loan.

The new facility allows Entercom Radio to raise incremental facilities secured by the same collateral securing the facility in an amount up to $75 million, plus such additional amounts as would not result in the consolidated secured leverage ratio exceeding 3.5 times.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer on the facility. Morgan Stanley Senior Funding, Inc., RBC Capital Markets LLC and Wells Fargo Bank, NA are co-syndication agents, and Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley, RBC and Wells Fargo Securities, LLC are joint lead arrangers and bookrunners.

Proceeds were used to refinance Entercom’s existing senior secured credit facility and issue a call notice and fund the redemption of its $220 million 10˝% senior notes due 2019.

Entercom is a Bala Cynwyd, Pa.-based broadcaster.

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