IBJNews

After cutting debt, Emmis lines up $100M refinancing

Back to TopCommentsE-mailPrintBookmark and Share

Emmis Communications Corp. on Friday said it had pulled off a $100 million debt refinancing under favorable terms, the culmination of CEO Jeff Smulyan’s years-long quest to strengthen the company's balance sheet.

“This marks an important milestone for Emmis,” Smulyan said in a statement. “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.”

It wasn't immediately clear how much lower the interest rates on the new debt would be.

Indianapolis-based Emmis has been carrying debt far above market rates, some as high as 23 percent. It also was facing tens of millions of dollars in debt maturities in 2013 and 2014.

The new financing—an $80 million term loan and a $20 million credit line—does not come due until December 2017.

Participants in the new financing include affiliates of JPMorgan Chase, General Electric and Fifth Third Bank.

Emmis began rapidly cutting costs after the Great Recession caused a sharp decline in radio advertising revenue. The company further strengthened its balance sheet by selling radio stations and magazines and leasing a New York City radio station to ESPN Radio.

Smulyan this spring likened the process to “pushing water uphill.” He said the company, after years of being on defense, was ready to begin exploiting growth opportunities again.

Friday’s announcement of the refinancing came after the markets had closed for the afternoon. Emmis shares closed at $1.75, up two cents on the day.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT