Reservoir Media refinances with $248.75 million senior secured revolver

By Marisa Wong

Los Angeles, July 28 – Reservoir Holdings, Inc. wholly owned subsidiary Reservoir Media Management, Inc. completed a refinancing of its existing senior secured revolving credit facility in the form of a $248.75 million senior secured revolver, according to an 8-K filing with the Securities and Exchange Commission.

Reservoir Media Management entered into a fourth amended and restated credit agreement on Wednesday with Truist Bank as administrative agent in connection with its business combination with Reservoir Media, Inc.

The new credit facility matures on Oct. 16, 2024.

Borrowings bear interest at Libor plus a margin of 225 basis points.

The company is also required to pay an unused fee of 25 bps for unused commitments under the credit facility.

The credit facility requires the company to comply with financial covenants, namely to maintain a total leverage ratio of no greater than 6.00 to 1.00 as of the end of each fiscal quarter, a fixed-charge coverage ratio of not less than 1.25 to 1.00 for each four fiscal quarter period and a consolidated senior debt to library value ratio of 0.55, subject to some adjustments.

In addition to payment of fees and expenses related to the debt refinancing, proceeds of the new loan may be used to finance the company’s music publishing investments and for other general corporate purposes.

Truist Securities, Inc., Fifth Third Bank, Pinnacle Bank and Regions Bank are joint lead arrangers for the credit agreement.

The music company is based in New York.

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