Entravision has entered into a new $405 million credit facility provided by longtime lender GE Capital, according to a statement released Monday.
GE Capital’s telecom, media and technology financing business was the sole bookrunner on the transaction, according to a statement. The new credit facility replaces a $30 million revolving credit facility and $20 million term loan facility that had also been provided by GE, a spokesperson told Private Debt Investor. GE has acted as a lender to the Spanish language media company since 2010.
Entravision had announced the new credit facility in late May but had not identified GE Capital as its lender. The facility consists of a $30 million revolving credit facility and a $20 million term loan, as well as a $375 million delayed-draw term loan which may be drawn on a date of the company's choosing between 1 August and 15 August, according to Entravision. Proceeds from the $375 million delayed-draw will be used to pay down $20 million term loan and redeem the company's 8.75 percent senior notes due 2017.
“As a result of our new credit facility, we will substantially improve our capital structure, providing us with additional financial flexibility as we continue to execute our strategic plan to further strengthen our diversified media platform and fully capitalize on the growth of the nation's Latino population,” said Entravision chairman and chief executive officer Walter Ulloa in a statement.
Entravision manages television, radio and digital media outlets that cater to Spanish-speaking and Latino communities in the US and Mexico. In May, Moody’s adjusted its outlook of Entravision to positive when it assigned a B2 rating to the company’s first lien credit facility, according to a Reuters report.
In December, Entravision entered into a new term loan and revolving credit facility of up to $50 million consisting of a four year $20 million term loan facility and a four year $30 million revolver that expires in December 2016, according to a US Securities and Exchange Commission filing.