Radio One sets Monday launch for $400 million senior credit facility

By Sara Rosenberg

New York, June 17 - Radio One Inc. has scheduled a bank meeting for early afternoon on Monday to launch its proposed $400 million senior secured credit facility (BB-), according to a market source.

The facility consists of a $50 million revolver and a $350 million term loan B.

Pricing on the revolver is expected at Libor plus 450 basis points and pricing on the term loan B is expected at Libor plus 500 bps with a 2% Libor floor and an original issue discount of 99, based on a recent 8-K filing with the Securities and Exchange Commission.

Pricing is subject to change during syndication; however, the revolver will be priced 50 bps below the term loan, the filing said.

Deutsche Bank is the lead bank on the deal and has committed to provide the revolver and to use commercially reasonable efforts to syndicate the B loan.

Financial covenants include a minimum interest coverage ratio and a maximum first-lien net leverage ratio.

Proceeds will be used to refinance the company's existing credit facility.

Radio One is a Lanham, Md.-based diversified media company that primarily targets African-American and urban consumers.

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