Emmis ups talk on $185 million term loan to Libor plus 450-475 bps

By Sara Rosenberg

New York, May 2 - Emmis Communications Corp. raised price talk on its $185 million seven-year senior secured term loan to Libor plus 450 basis points to 475 bps from Libor plus 400 bps, according to a market source.

Also, the original issue discount talk was changed to 98½ from 99 and a leverage covenant was added to the previously covenant-light deal, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company's $205 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Recommitments were due at 5 p.m. ET on Friday, the source added.

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

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 4.58 times based on pro forma expected EBITDA of $40.4 million for the fiscal year ending Feb. 28, 2015.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.