Magazine article American Banker

Stay Tuned: $350M More Credit for Chancellor Broadcasting

Magazine article American Banker

Stay Tuned: $350M More Credit for Chancellor Broadcasting

Article excerpt

Now that Toronto Dominion Bank has wrapped up a $1.75 billion financing for Evergreen Media's purchase of Chancellor Broadcasting, Chancellor has some refinancing of its own to do.

Over the next few weeks, Chancellor is expected to increase a $375 million credit facility to $725 million, bankers close to the deal said. The fattened credit will help Chancellor finance a $480 million purchase of several radio stations from Viacom.

If Evergreen's experience is any indication, Chancellor's bankers should have no trouble syndicating a new loan. Bankers have been eager to ride the wave of rapid consolidation that has swept the radio business, which is believed to be one of the few area s of media communications on a positive tear.

Bankers Trust acted as administration agent, NationsBank Corp. as syndication agent, and Goldman, Sachs & Co. as documentation agent for Chancellor's existing $375 million loan.

Dallas-based Chancellor and Irving, Tex.-based Evergreen announced a merger agreement in January. The deal, which is set to close in the third quarter, will create the largest pure play radio company in the United States, with 99 stations, nationwide.

The combination hinges on the $1.075 billion purchase of stations from Viacom, which must occur by mid-June. Evergreen is planning to buy $595 million of stations from Viacom, according to bankers close to the deal, with Chancellor buying the rest.

Meanwhile, bankers were eager to get in on the Toronto-Dominion-lead loan to Evergreen. The credit, which closed last Friday, drew $2.5 billion in commitments from 46 banks, exceeding the $1.5 billion sought.

In fact, demand for a leading position in the credit-which was split into a $1.25 billion revolver and a $500 million term loan, for eight years-was so high that 15 of the top positions were tied up before the loan went out to the general markets, accordi ng to lenders familiar with the deal. …

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