Cumulus Saves Millions in Interest
Cumulus 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.