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Entercom expecting to maintain covenant compliance through year-end
By Jennifer Lanning Drey
Portland, Ore., Aug. 3 - Entercom Communications Corp. expects to remain in compliance with its bank covenants at least through the balance of 2009, Steve Fisher, chief financial officer of Entercom, said Monday during the company's second-quarter earnings conference call.
The company's leverage ratio as defined in its senior credit agreement was 5.6 times at June 30.
"We understand that many of our peers have gone in and renegotiated. We are aware of that option, but at the moment, we are not in discussions with our bank group," Fisher said during the question-and-answer portion of the call.
During the second quarter, Entercom repurchased $18.4 million of its senior subordinated notes for a net debt reduction of $20.3 million.
Entercom's debt at June 30 included $761.2 million of senior debt and $44.1 million of senior subordinated notes.
"In light of the economic uncertainty, we've been focused on reduction of debt," Fisher said.
To that end, Entercom's board of directors allowed the company's share buyback authorization program to expire on June 1. Fisher said the board would reconsider the program when business and leverage conditions improve.
Entercom had $17.9 million of cash and cash equivalents at the end of the quarter.
The company posted net revenues of $101.3 million for the second quarter, down 18% from the prior-year period. EBITDA decreased 32% to $30.1 million.
Although lower than the comparable prior-year period, Entercom's second-quarter revenue performance showed a modest sequential improvement from the first quarter, and the company expects to see continued improvement in the third quarter, David J. Field, Entercom's chief executive officer, said during the call.
Entercom is a Bala Cynwyd, Pa., radio broadcasting company.
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