CBS Radio readies launch of $500 million term loan B for Wednesday

By Sara Rosenberg

New York, Feb. 21 – CBS Radio Inc. set a lender call for 3:30 p.m. ET on Wednesday to launch its $500 million senior secured term loan B, according to a market source.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the leads on the deal.

The term loan is being done in connection with the merger of CBS Radio with Entercom Communications Corp.

Proceeds will be used to refinance Entercom’s existing $465 million term loan B and to pay down $28 million of Entercom’s convertible preferreds.

The combined companies’ pro forma revenue on a trailing 12 months basis was about $1.7 billion, and adjusted EBITDA was nearly $500 million, including expected transaction synergies.

After completion of the merger, CBS Radio shareholders will receive about 105 million Entercom shares, or 72% of all outstanding shares of the combined company on a fully diluted basis. Existing Entercom shareholders will own 28% of the combined company on a fully diluted basis.

Closing is expected in the second half of this year, subject to approval by Entercom shareholders, regulatory approvals and other customary conditions.

The combined radio broadcasting company will be known as Entercom and will be based in Philadelphia.

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