Pegasus Communications gets $60 million in financing

By Jeff Pines

Washington, Nov. 29 - Pegasus Communications Corp. obtained $60 million in financing from Fortress Credit Corp. for a new subsidiary it is creating, the company said in a Monday filing with the Securities and Exchange Commission.

The agreement calls for $55 million in term loans and a $5 million revolver for the new company to acquire the broadcast television business currently run by bankrupt Pegasus subsidiaries.

The term loans and revolver would be for 5 years. The package consists of a $25 million term loan A at Libor plus 450 basis points, a $20 million term loan B at Libor plus a margin of up to 950 basis points. The interest rate on term loan C for $10 million will be 16%. The interest rate on the revolver would be 450 basis points.

After the subsidiary is formed, it will give Fortress warrants to acquire a 10% stake in the unit.

Pegasus is based in Bala Cynwyd, Pa.

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