The “local first” media company with a collection of radio stations in small and mid-sized markets and a growing digital and programmatic profile has entered into a sizable credit agreement with Bank of America, the details of which were provided to the Securities & Exchange Commission on Monday.
Townsquare Media on February 19 entered into a $490 million credit agreement with the financial institution, serving as administrative agent and collateral agent.
The agreement provides for a five-year, $470 million senior secured term loan facility, and an accompanying five-year, $20 million senior secured revolving credit facility.
What was the purpose of this agreement with BofA? Townsquare used the approximately $453 million of net proceeds from the “Senior Secured Credit Facility” — after giving effect to original issue discount, fees, expenses and the $10 million of a Revolving Credit Facility drawn at closing — and with cash on hand to redeem all of the broadcaster’s outstanding 6.875% senior secured notes due 2026.
The value of those notes is $467.4 million.
The Term Loan Facility matures on February 19, 2030, as do revolving loans incurred under the Revolving Credit Facility.
As of 1:30pm Eastern, “TSQ,” which trades on the NYSE, was valued at $8.82, up 10 cents from Friday’s closing price.
