CUMULUS MEDIA has made a voluntary prepayment of $115 million on its first lien senior secured term loan. The payment, funded by the proceeds of the sale of Hot AC WPLJ/NEW YORK, News-Talk WYAY/GAINESVILLE, GA-ATLANTA, Hot AC WRQX (MIX 107.3)/WASHINGTON, Triple A KFFG/LOS ALTOS-SAN JOSE, Hot AC WZAT (102.1 THE SOUND)/TYBEE ISLAND, GA-SAVANNAH, and Classic Rock WXTL (THE REBEL 105.9)/SYRACUSE to EDUCATIONAL MEDIA FOUNDATION for $103.5 million, brings the company’s reduction of debt in its first post-bankruptcy year to $200 million and its net leverage down from about 5.8x at emergence to 4.8x.
The company also expects to use the proceeds from the sale of Rock KLOS/LOS ANGELES to MERUELO MEDIA for $43 million, closing in third quarter, to pay down debt.
Pres./CEO MARY G. BERNER said, “In our ongoing efforts to strengthen the business, CUMULUS has been relentlessly focused on executing our key strategic priorities and meeting our financial objectives. The milestone we achieved today — $200 million of debt reduction in the first year since we emerged from Chapter 11 — resulted from those efforts and is another example of the progress we continue to make in implementing our business plan.
“I would like to thank the entire CUMULUS team for the hard work and dedication which have produced such a tremendous record of achievement over the past year, and I have every confidence that, together, we will be able to further improve our financial position and continue to deliver on the goals we have laid out for the business.”