By Paul A. Harris
Portland, Ore., Nov. 18 - Entercom Radio, LLC priced a downsized $220 million issue of 10½% senior notes (Caa1/B-/) at 98.672 to yield 10¾% on Friday, according to an informed source.
The yield printed 50 basis points beyond the wide end of the 10% to 10¼% price talk.
Bank of America Merrill Lynch was the left bookrunner for the issue, which was downsized from $250 million, with $30 million being shifted to the company's term loan.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
With the downsizing of the bonds Entercom increased the size of its term loan B to $375 million from $345 million.
Proceeds, together with proceeds from the term loan and a $50 million five-year revolver, will be used to repay the existing credit facilities and for general corporate purposes.
Entercom is a Bala Cynwyd, Pa.-based radio broadcasting company.
| Issuer: | Entercom Radio, LLC
|
| Face amount: | $220 million, decreased from $250 million
|
| Proceeds: | $217 million
|
| Maturity: | Dec. 1, 2019
|
| Left bookrunner: | Bank of America Merrill Lynch
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 10½%
|
| Price: | 98.672
|
| Yield: | 10¾%
|
| Spread: | 911 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2015, then callable at 105.25, 102.625, par on and after Dec. 1, 2017
|
| Equity clawback: | 35% at 110.5 until Dec. 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 10% to 10¼%
|
| Marketing: | Roadshow
|
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