Entercom to price $500 million eight-year second-lien notes on Friday; guidance low 7% area

By Paul A. Harris

Portland, Ore., March 11 – Entercom Communications Corp. plans to price a $500 million offering of eight-year senior secured second-lien notes (B3/B-) on Friday, according to market sources.

The Rule 144A and Regulation S with registration rights notes offering, which kicked off on a Thursday morning conference call with investors, is in the market with initial guidance in the low 7% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. Deutsche Bank Securities Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Philadelphia-based audio and entertainment company plans to use the proceeds to refinance its 7¼% senior notes due 2024, with the remaining proceeds to be used to pay down its senior secured credit facilities.

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