Barrington gets lender OK on loan amendment that allows for notes repurchase

By Sara Rosenberg

New York, Feb. 10 - Barrington Broadcasting Group LLC completed the amendment to its credit facility that allows the company to use for one year up to $13 million of cash to repurchase and retire a portion of its 10½% senior subordinated notes due 2014, and to effect exchanges of qualified capital stock for the notes, according to a company report.

In addition, the amendment increased pricing on the term loan and the revolver to Libor plus 425 basis points.

The amendment also increased the excess cash flow sweep to 100% form 50%, eliminated the uncommitted $50 million incremental term loan, and eliminated the company's ability to make certain dividends or to redeem or repurchase equity.

The amendment was completed on Feb. 5 and will become effective when Pilot Group LP, the company's equity sponsor, makes a cash equity contribution of roughly $16 million.

Bank of America is the administrative agent on the credit facility.

Barrington is a Hoffman Estates, Ill.-based acquirer and operator of television stations.

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