Radio One launches $350 million term loan B at Libor plus 525 bps

By Sara Rosenberg

New York, June 21 - Radio One Inc. launched its $350 million term loan B on Monday with price talk of Libor plus 525 basis points with a 1.5% Libor floor and an original issue discount of 99, according to sources.

Previously, the term loan B was expected at Libor plus 500 bps with a 2% Libor floor and an original issue discount of 99 based on a 8-K filed with the Securities and Exchange Commission.

The company's $400 million senior secured credit facility (Ba3/BB-) also includes a $50 million revolver that is, according to the 8-K, expected to be priced 50 bps lower than the term loan.

Deutsche Bank is the lead bank on the deal.

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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