J.P. Morgan, GE Arrange Emmis Communications $100MM Facility
Emmis Communications completed a new $100 million credit agreement. It is comprised of an $80 million term loan and $20 million revolving line of credit with a five year maturity.
The facility was led by J.P. Morgan Securities and GE Capital Markets as joint bookrunners and joint lead arrangers. JPMorgan Chase acted as administrative agent, GE Capital acted as syndication agent and Fifth Third Bank as documentation agent.
Proceeds from the agreement will be used to refinance the company’s existing term loan B, extended term loan B, senior unsecured notes and for general corporate purposes. The company expects that the new credit agreement will further enhance steps the company has taken during the past year to create shareholder value by reducing interest expenses and targeting free cash flow generated for principal repayments.
“This marks an important milestone for Emmis,” remarked Jeffrey Smulyan, Emmis chairman and CEO. “We’re thrilled that after several years of hard work we are now in a position to refinance the company at favorable and flexible terms to provide Emmis the capital to fuel our future growth. I’m also excited that our efforts allowed us to once again work with a number of local banks here in Indianapolis as we work together to build Emmis as a unique corporate asset in our community.”
Emmis Communications is a media company with a primary focus on radio broadcasting.