Entravision Communications Corp. (EVC), a Santa Monica, California-based Spanish-language media company, is seeking $405 million of loans to refinance debt and paydown bonds, according to a person with knowledge of the deal.
GE Capital Markets, the lending unit of General Electric Co., is arranging the deal that includes a $30 million revolving line of credit that pays a rate of 300 basis points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private.
The debt also includes a $375 million term loan that will be drawn in August when the bonds are callable, the person said. The term loan will pay interest rate at 300 basis points more than Libor with a 100 basis pointsfloor on the lending, the person said. Libor is a rate banks say they can borrow in dollars from each other. The financing is covenant-light, the person said.
A bank meeting is scheduled for May 9 with commitments due May 22, the person said.
In a revolving credit facility, money can be borrowed again once it’s repaid: in a term loan it can’t.
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