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Radio One posts net debt of $633 million, 8.12x leverage at Dec. 31
By Jennifer Lanning Drey
Savannah, Ga., March 3 - Radio One, Inc.'s debt net of cash was $633 million at Dec. 31 after the company completed an amended exchange offer related to all of its senior notes due 2011 and 2013 in the fourth quarter, Peter Thompson, its chief financial officer, reported Thursday during its earnings conference call.
Also in the fourth quarter, an amendment to the company's senior secured credit facility became effective, which cured all prior defaults triggered in the second and third quarters under the terms of the facility, Radio One reported.
The credit facility expires in mid-2012, but the company will look to put a new facility in place by the middle of 2011, Thompson said during the question-and-answer portion of the call.
"Sooner rather than later, to be blunt about it," he added.
Radio One's senior debt-to-EBTIDA ratio was 4.48 times at Dec. 31, while its ratio of total debt to EBTIDA was 8.12 times, compared with a maximum covenant of 9 times, Thompson reported.
'Best of 2010'
For the fourth quarter, Radio One reported net revenue of $71.2 million, which was up from $67.3 million in the fourth quarter of 2009.
"Our Q4 was a solid quarter for us, and it was the best of 2010," Alfred C. Liggins, Radio One's chief executive officer, said during the call.
Overall core radio revenues were up 8% in the fourth quarter compared to the same period in the prior year, led by national business and radio segment internet revenue. Internet business revenues were down 8% versus the prior-year period.
"We're seeing that the radio industry will continue to improve in 2011 as the broader economy improves, albeit we're starting out a little slow, but we're still very optimistic about the year based on the trends that we're seeing," Liggins said.
Radio One is a Washington, D.C.-based broadcasting company.
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