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Urban One provides details on $242 million of new credit agreements
By Sarah Lizee
Olympia, Wash., Dec. 11 – Urban One, Inc. provided details of its $242 million of new credit agreements in an 8-K filed with the Securities and Exchange Commission on Monday.
On Dec. 4, the company entered into a credit agreement with Wilmington Trust, NA as administrative agent that will provide for up to about $192 million in unsecured term loan borrowings if drawn.
TCG Senior Funding LLC is the lead arranger and bookrunner.
The facility matures on Dec. 31, 2022.
Interest rates on borrowings will be either 12 7/8% per year from the funding date to the maturity date, 11 7/8% per year once 50% of the term loan borrowings have been repaid or 10 7/8% per year once 75% of the term loan borrowings have been repaid.
Interest payments begin on the last day of the three-month period starting on the funding date.
The facility is guaranteed on an unsecured basis by each entity that guarantees the company’s outstanding $350 million senior secured credit facility.
The term loans may be voluntarily prepaid prior to Feb. 15, 2020, subject to a prepayment premium.
There is a maintenance covenant requiring the company’s total gross leverage ratio to be not greater than 8 to 1 in 2019, 7.5 to 1 in 2020, 7.25 to 1 in 2021 and 6.75 to 1 in 2022.
Proceeds from the unsecured term loan will be used to finance the company’s cash tender offer for its 9¼% senior subordinated notes due 2020 or to otherwise refinance, repurchase, redeem or repay the notes.
MGM National Harbor loan
Also on Dec. 4, some of the company’s subsidiaries entered into a credit agreement that is expected to provide up to about $50 million in term loan borrowings secured in part by those subsidiaries’ interests in MGM National Harbor.
The MGM loan matures on Dec. 31, 2022 and bears interest at 7% per year in cash plus 4% per year paid in kind.
The loan has limited ability to be prepaid in the first two years.
Urban One, formerly known as Radio One, Inc., is a Washington-based urban-oriented multimedia company.
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