Cumulus Saves Millions in Interest

By on Jan, 2 2016 with Comments 0

CumulusCumulus Media is working down its debt.

The company said it has paid a discounted “prepayment” portion of a $1.9 billion secured loan that comes due in December 2020.

The radio owner bought $64.9 million of face value of the loan for $50 million, representing a 23% discount to par value.

The transaction will enable Cumulus to take a one-time non-operating gain of about $14.9 million in its Q4 earnings and will save the company about $2.75 million in interest per year.  J.P. Morgan Securities advised Cumulus on the prepayment, which closed December 31.

About The Author: Leslie Stimson has been a reporter for 35+ years, starting in radio news. She’s spent the last 20 years reporting for radio trades.

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