On August 9, 2012, Beasley Mezzanine Holdings, LLC, a wholly owned subsidiary of Beasley Broadcast Group, Inc., entered into two new credit agreements: a $110 million first lien facility and a $25 million second lien facility, both with GE Capital as administrative agent.

Proceeds from the new credit facilities were primarily used to repay the company’s old credit facility. In connection with the new credit agreements, the company expects to record a loss on extinguishment of long-term debt of approximately $2.8 million during the third quarter of 2012.

The first lien facility consists of a revolving credit facility of $20 million and a term loan of $90 million. The revolving credit facility includes a $5 million sub-limit for letters of credit. The first lien facility may bear interest at either (i) the Adjusted LIBOR Rate, as defined in the first lien credit agreement, plus a margin ranging from 3.5% to 5.0% on the revolving credit facility that is determined by our total leverage ratio and the Adjusted LIBOR Rate plus a margin of 5.0% on the term loan or (ii) the Base Rate, as defined in the first lien credit agreement, plus a margin ranging from 2.5% to 4.0% on the revolving credit facility that is determined by our total leverage ratio and the base rate plus a margin of 4.0% on the term loan. Interest on LIBOR rate loans is payable at the end of each applicable interest period and, for those interest periods with a duration in excess of three months, at the three month anniversary of the beginning of such interest period. Interest on base rate loans is payable quarterly in arrears. The first lien facility matures on August 9, 2017.

The first lien facility is secured by a first-priority lien on substantially all of the company’s assets and the assets of each of its subsidiaries and is guaranteed jointly and severally by the company and all of its subsidiaries.

The second lien facility consists of a term loan of $25 million. The second lien facility may bear interest at either the Adjusted LIBOR Rate or Base Rate, each as defined in the second lien credit agreement, plus a margin of 10.0% on a LIBOR rate loan and a margin of 9.0% on a base rate loan. The Adjusted LIBOR Rate for the second lien facility may not be less than 1.25%. Interest on LIBOR rate loans is payable at the end of each applicable interest period and, for those interest periods with a duration in excess of three months, at the three month anniversary of the beginning of such interest period. Interest on base rate loans is payable quarterly in arrears. The second lien facility matures on August 9, 2018.

The second lien facility is secured by a second-priority lien on substantially all of the company’s assets and the assets of each of its subsidiaries and is guaranteed jointly and severally by the company and all of its subsidiaries.