Entravision Communications entered into a new $50 million credit facility, consisting of a $20 million term loan and a $30 million revolving credit facility. The new credit facility replaces the company's existing $50 million revolving credit facility.
The company intends to use proceeds from the $20 million term loan to partially fund the company's previously announced redemption of $40 million of the company's 8.750% Senior Secured First Lien Notes due 2017. The company intends to use proceeds from any future borrowings under the new revolving credit facility to, among other things, fund its working capital needs and other general corporate purposes.
Additional details of the new credit facility are outlined in the company's Current Report on Form 8-K dated today, filed with the Securities and Exchange Commission.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television, radio and digital operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico.
The following is an excerpt from the 8-K filing.
On December 20, 2012, Entravision Communications Corporation (the “Company”) entered into a new term loan and revolving credit facility of up to $50.0 million (the “New Credit Facility”) pursuant to a Credit Agreement (the “Credit Agreement”), by and among the Company, certain other persons a party thereto that are designated as a “Credit Party” (as defined in the Credit Agreement), General Electric Capital Corporation (“GE Capital”), as Agent for the several financial institutions from time to time party to the Credit Agreement (collectively, the “Lenders” and individually each a “Lender”) and for itself as a Lender and such Lenders, and GE Capital Markets, Inc., as Sole Lead Arranger and Bookrunner. The Credit Agreement amends and restates that certain credit agreement dated as of July 27, 2010, among the Company, other persons party thereto designated as a credit party, GE Capital as Agent and the lenders party thereto (the “Former Credit Agreement”).