Radio One, Inc. Announces New Senior Credit Facility
WASHINGTON, April 1, 2011 /PRNewswire via COMTEX/ -- Radio One, Inc. (the "Company" or "Radio One") (Nasdaq: ROIAK; ROIA) today announced that it has closed upon a new senior secured credit facility comprised of a $25.0 million "super-priority" revolving credit facility and a $386.0 million term loan (the "New Senior Credit Facility"). The applicable margin on the New Senior Credit Facility is between (i) 4.50% and 5.50% on the revolving portion of the facility and (ii) 5.00% (with a base rate floor of 2.50% per annum) and 6.00% (with a LIBOR floor of 1.50% per annum) on the term portion of the facility. The revolving portion of the credit facility matures on March 31, 2015 and the term portion of the credit facility matures on March 31, 2016.
As of April 1, 2011, Radio One has initial borrowing availability of $25.0 million under the revolving portion of the credit facility which may be used for general corporate purposes. The proceeds of the term portion of the New Senior Credit Facility were used to refinance all of the Company's outstanding indebtedness under its prior senior credit facility. Borrowings under the facility are secured by a "super-priority" and/or a first priority lien on substantially all of Radio One's existing and hereafter acquired assets. Borrowings and availability under the facility are subject to compliance with financial covenants and other terms specified in the agreement.
Additional details regarding the credit facility will be included in a Form 8-K to be filed with the United States Securities and Exchange Commission.
Cautionary Information Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements represent management's current expectations and are based upon information available to the Company at the time of this press release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially are described in the Company's reports on Forms 10-K, and 10-Q and other filings with the SEC.
Radio One, Inc. (http://www.radio-one.com/) is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. As a part of its core broadcasting business, Radio One operates syndicated programming including the Russ Parr Morning Show (http://www.therussparrmorningshow.com/) the Yolanda Adams Morning Show (www.syndication1.com/yolanda.htm), the Rickey Smiley Morning Show (www.syndication1.com/rickey.htm), CoCo Brother Live (www.syndication1.com/coco.htm), CoCo Brother's "Spirit" (www.syndication1.com/coco.htm) program, Bishop T.D. Jakes' "Empowering Moments" (www.syndication1.com/td.htm), the Reverend Al Sharpton Show (www.syndication1.com/al.htm), and the Warren Ballentine Show (www.syndication1.com/warren.htm). The Company also owns a controlling interest in Reach Media, Inc. (http://www.blackamericaweb.com/), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One (http://www.interactiveone.com/), an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including NewsOne, TheUrbanDaily, HelloBeautiful, and social networks BlackPlanet, MiGente, and AsianAvenue and an interest in TV One, LLC (http://www.tvoneonline.com/), a cable/satellite network programming primarily to African-Americans
SOURCE Radio One, Inc.