Radio One launches $350 million six-year term loan B to investors

By Sara Rosenberg

New York, March 16 – Radio One Inc. held a lender presentation on Thursday to launch a new $350 million six-year term loan B (B2/B), according to an 8-K filed with the Securities and Exchange Commission.

Guggenheim Securities LLC is the lead on the deal, a market source said.

Included in the term loan is a 1% Libor floor and 101 soft call protection for six months.

The term loan has amortization of 1% per annum and an excess cash flow sweep of 50%, stepping down to 25% if net total leverage is less than 6 times and to 0% if net total leverage is less than 5 times.

Financial covenants include a 5.85 times net secured leverage ratio and a 1.25 times interest coverage ratio.

Proceeds will be used to refinance an existing roughly $345 million term loan due December 2018.

Secured net debt is 4.81 times and total net debt is 7.21 times.

Commitments are due March 30.

Closing is expected on April 18.

Radio One is a Silver Spring, Md.-based urban-oriented, multimedia company.

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