June 20 (Bloomberg) -- Cumulus Media Inc., the U.S. radio broadcaster acquiring Citadel Broadcasting Corp., offered the rate it may pay on a $2.04 billion term loan to support the transaction and refinance debt.
The company is proposing to pay 3.75 percentage points to 4 percentage points more than the London interbank offered rate and the lending benchmark will have a 1.25 percent floor, according to two people with knowledge of the deal, who declined to be identified because the terms are private.
Cumulus, based in Atlanta, may sell the seven-year debt at 99-99.5 cents on the dollar, said the people, reducing proceeds for the borrower and boosting the yield for investors.
The JPMorgan Chase & Co.-led transaction includes a $375 million five-year revolving line of credit. Standard & Poor’s today assigned a B+ rating to the credit facilities. Lenders must let the bank know by June 29 if they will participate in the deal, the people said.
Lenders will get 101 soft-call protection for one-year, said the people, meaning the company would pay one cent more than face value to reprice the debt in its first year.
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