Reservoir Media amends, restates and extends upsized $450 million revolver

By William Gullotti

Buffalo, N.Y., Dec. 20 – Reservoir Media Management, Inc., a wholly owned subsidiary of Reservoir Media, Inc., amended and restated its revolving credit facility with Truist Bank as administrative agent on Dec. 16, according to an 8-K filing with the Securities and Exchange Commission.

The revolver’s commitments were increased to $450 million from $350 million, and the accordion feature was simultaneously boosted to $150 million from $50 million.

The amended credit facility’s maturity date was extended to Dec. 16, 2027 from Oct. 16, 2024.

The benchmark interest rate was updated to SOFR from Libor, with borrowings bearing interest at SOFR plus a 200 basis point or 225 bps margin. The margin is determined by the company’s consolidated net senior debt to library value ratio.

The 25 bps commitment fee on the unused portion of the revolver remained unchanged.

The amendments also reduced the minimum required fixed charge coverage ratio financial covenant to 1.1 to 1.0, modified the consolidated senior debt to library value percentage to 45% and removed the 7.5 to 1.0 maximum leverage ratio from the covenants.

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

The music company is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.