WASHINGTON — Radio One Inc., an owner of radio stations targeting African-American listeners, said Wednesday it is refinancing its debt and raising its stake in TV One LLC.
The company said it has obtained a new senior secured credit facility, with a $50 million revolving credit facility and a $350 million term loan. It will use the proceeds to refinance all outstanding debt. Affiliates of Deutsche Bank will provide the revolving loan, and the bank will make efforts to syndicate the term loan.
Radio One said it is also offering to exchange senior debt that was set to expire in 2011 and 2013. The company said it is offering to exchange $1,000 worth of outstanding 8 7/8 percent senior subordinated notes due 2011 for $1,000 worth of newly issued 11 percent senior grid notes due 2017. It will is also offering to exchange $1,000 worth of outstanding 6 3/8 percent senior subordinated notes due 2013 for $900 worth of the same newly issued notes.
The company also said it will offer holders of existing notes who participate in the exchange offer the opportunity to buy a total of $100 million of 8.5 percent/9 percent second-priority senior secured grid notes due 2016. Radio One said it will use the proceeds to pay about $82 million for 19 percent of TV One. Radio One already owns about 37 percent of TV One.
Radio One said holders of about 80 percent of the existing senior notes have agreed to the offerings. At least 95 percent of note holders must tender the notes for the deal to go through.
Shares of Radio One rose 4 cents to close at $2.77.
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