Alpha Media returns to market with $265 million first-lien term loan

By Sara Rosenberg

New York, Feb. 11 – Alpha Media is back in market with its $265 million six-year first-lien term loan that was attempted last year but was never completed, according to a market source.

Citizens Bank and Antares Capital are the lead arrangers on the deal.

Price talk on the first-lien term loan is Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 95, the source said.

Included in the loan is 101 soft call protection for one year, a total leverage covenant and amortization of 5% per annum.

Commitments are due on Feb. 19.

A couple of anchor orders have already come in on the deal, the source continued.

The company’s $350 million credit facility also includes a $20 million revolver and a $65 million second-lien term loan that has been privately placed.

Proceeds will be used to fund the acquisition of radio stations from Digity LLC.

The first-lien term loan had originally launched in October 2015, but never syndicated or funded as the purchase agreement for the radio stations expired, the source explained.

Now the purchase is back on and the loan is back in syndication with sweeter terms.

During its first syndication attempt, the first-lien term loan was solely led by Citizens Bank and talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months. Also, amortization was 2.5% per annum.

Alpha Media is a Portland, Ore.-based radio broadcast media company.

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