Daily News: June 11, 2014

JPMorgan Agents Emmis Communications Facilities

Emmis Communications has entered into a credit agreement with its subsidiary Emmis Operating as borrower. Other subsidiaries acted as guarantors. JPMorgan acted as administrative agent and Fifth Third Bank as syndication agent.

The credit agreement includes a senior secured term loan facility of $185 million and a senior secured revolving credit facility of $20 million, and contains provisions for an uncommitted increase of up to $40 million principal amount of the revolving credit facility and/or the term loan, subject to the satisfaction of certain conditions.

The revolving credit facility includes a sub-facility for the issuance of up to $5 million of letters of credit. Pursuant to the credit agreement, the borrower borrowed $185 million of
the term loan on June 10, 2014; $109 million was disbursed to the borrower and the remaining $76 million was funded into escrow.

The funds will be used for the borrower to repay all amounts outstanding under the existing credit agreement, to make a $55 million initial payment in respect of the acquired business and to pay fees and expenses.

The proceeds of the revolving credit facility will be used for working capital and other general corporate purposes. The subsequent acquisition proceeds are expected to be used to make the final $76 million payment in respect of the acquired business. If the subsequent acquisition proceeds are not fully used by February 17, 2015, they will be used to repay the term loan.