Cumulus Makes Big Loan Prepayment



On New Year’s Eve, Cumulus completed a discounted prepayment of a portion of its $1.9 billion senior secured-term loan facility due December 2020. Cumulus purchased $64.9 million of its senior secured-term loan for $50 million, a discount of 23%. Cumulus will recognize a one-time non-operating gain of about $14.9 million in its fourth quarter earnings as a result of the transaction. Further, the company will benefit from $2.75 million of reduced annual interest expense resulting from the transaction.


  1. Less liquidity for a company that’s bleeding cash, daily! Mr. McVay has done nothing but bring back his OLD radio buddies, or promote re-treads. John Dickey was a problem, but McVay is going to make him look like Santa Claus when he’s finished scratching the backs of all his old time radio buddies… not to mention the unprofessional issues that are starting to surface. Mrs. Mary will eventually smell the rat.


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