Entravision Communications has amended its senior credit agreement in a move aimed at increasing financial flexibility. The new terms, announced July 15, give Entravision tools to stagger loan maturities and negotiate revised provisions with individual lenders.
The company can now offer extensions to its existing loans and revolving credit commitments, creating new loan tranches with lender-specific terms such as adjusted interest rates or repayment schedules. Any extensions must mature no earlier than March 2028 and may not shorten the average life of existing debt.
In return for this added flexibility, Entravision is implementing more aggressive debt reduction efforts. Scheduled quarterly term loan payments are doubling from $2.5 million to $5 million, building on a voluntary $10 million prepayment made in the second quarter of 2025. At the same time, the company is trimming its revolving credit facility from $75 million to $30 million, a move that lowers commitment fees while streamlining liquidity needs.
The amendment also adjusts Entravision’s financial covenants. The company’s net leverage ratio will now be calculated over a trailing eight-quarter period instead of four, and the maximum allowed ratio will increase from 3.25x to 4.0x to better reflect the cyclical nature of political advertising revenues and provide more stability in periods of uneven cash flow.
While the changes are proactive, they also reflect the broader pressures from tighter ad markets and rising capital costs as the Hispanic-focused broadcaster adjusts its strategy following the end of its $500 million digital advertising representation business.
CFO Mark Boelke said, “Reducing debt is a key priority for Entravision that will provide operational and financial stability and flexibility. The media industry is undergoing unprecedented changes, and this amendment provides us with additional financial flexibility to navigate these changes and build shareholder value.”
The broadcaster operates 46 Spanish-language radio stations and the Latino Radio Network.
