GE Capital Closes $50 Million Revolver for Entravision
Wednesday, July 28, 2010
Entravision Communications Corporation announced that it entered into its previously announced new revolving credit facility of up to $50 million.
According to the company's 8-K, it entered into the new credit facility pursuant to a credit agreement with General Electric Capital as lender and as agent for all lenders, and GE Capital Markets as sole lead arranger and bookrunner. The new credit facility described in the credit agreement consists of a three-year $50 million revolving credit facility, which includes a $3 million subfacility for letters of credit. In addition, the new credit facility provides that the company may increase the aggregate principal amount of the new credit facility by up to an additional $50 million, subject to the company satisfying certain conditions.
The new credit facility is guaranteed on a senior secured basis by all of the company's existing and future wholly owned domestic subsidiaries, which are also the guarantors under the notes offering detailed further below. The new credit facility is secured on a first priority basis by the company's and the credit parties' assets, which also secure the notes. The company's borrowings under the new credit facility will effectively rank senior to the notes upon the terms set forth in the intercreditor agreement.
The company's borrowings under the new credit facility will bear interest at either: (i) the Base Rate plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum. The new credit facility expires on July 27, 2013. Amounts outstanding under the new credit facility may be prepaid at the option of the company without premium or penalty, subject to customary breakage fees in connection with the prepayment of a LIBOR rate loan. Borrowings under the new credit facility will be used by the company to, among other things, fund its working capital needs and for other general corporate purposes.
In connection with the company's entry into the indenture and the credit agreement, the company and the Guarantors also entered into a security agreement, dated July 27, 2010, with General Electric Capital as collateral trustee. Pursuant to the security agreement, the company and the guarantors granted first priority security interests in the collateral securing the notes and the new credit facility in favor of the collateral trustee, for the benefit of the noteholders and the lenders under the new credit facility, as such collateral is defined in the indenture, the credit agreement and the security agreement, as applicable.
In connection with the previous agreement, the company and the guarantors entered into a collateral trust and intercreditor agreement, dated July 27, 2010, with Wells Fargo Bank as the trustee under the indenture, and General Electric Capital, as the collateral trustee and as the administrative agent under the new credit facility, in order to define the relative rights of the holders of the notes and the lenders under the new credit facility with respect to the collateral securing the company's and the guarantors' respective obligations under the notes and the new credit facility.
The company also announced the closing of its previously announced offering of $400 million aggregate principal amount of 8.750% senior secured first lien notes due 2017. The notes were sold to investors at 98.722% of par. The company intends to use the net proceeds from the notes offering to, among other things, repay in full outstanding indebtedness under its existing syndicated bank credit facility, pay fees and expenses related to the notes offering and for general corporate purposes. In addition, the company intends to use proceeds from future borrowings under the new revolving credit facility to, among other things, fund its working capital needs and for other general corporate purposes.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico.
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