By Hassahn Liggins
Emmis Communications Corporation (Nasdaq: EMMS) announced today the completion of a new $100 million Credit Agreement. Proceeds from the Credit 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 new Credit Agreement is comprised of an $80 million term loan and $20 million revolving line of credit with a five year maturity. 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 Chief Executive Officer. “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.”
The $100 million Credit Agreement was led by J.P. Morgan Securities LLC and GE Capital Markets, Inc. as Joint Bookrunners and Joint Lead Arrangers. JPMorgan Chase Bank, N.A. will act as Administrative Agent, General Electric Capital Corporation, acted as Syndication Agent and Fifth Third Bank as Documentation Agent.