Cumulus Media enters into $100 million five-year ABL revolver

By Sarah Lizee

Olympia, Wash., March 12 – Cumulus Media Inc. subsidiaries Cumulus Media New Holdings Inc. and Cumulus Media Intermediate Holdings, Inc. entered into a $100 million asset-based revolving credit facility on March 6 with Fifth Third Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The revolver refinances and replaces the company’s $50 million revolver dated as of Aug. 17, 2018 with Deutsche Bank AG New York Branch as administrative agent.

The new revolver matures March 6, 2025.

Availability is tied to a borrowing base equal to 85% of the accounts receivable of the borrowers, subject to customary reserves and eligibility criteria and reduced by outstanding letters of credit.

Up to $10 million of availability may be drawn in the form of letters of credit and up to $10 million of availability may be drawn in the form of swingline loans.

Borrowings bear interest at Libor plus 100 basis points.

The unused portion of the revolver will be subject to a commitment fee of 25 bps.

The revolver does not contain any financial maintenance covenants with which the company must comply. However, if average excess availability under the revolver is less than the greater of 12.5% of the total commitments thereunder or $10 million, the company must comply with a fixed charge coverage ratio of not less than 1 to 1.

Cumulus Media is an Atlanta-based radio broadcaster.

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