Infinity Broadcasting Corp. said its bank group, led by Chase Manhattan Corp., provided $150 million of new loans to finance the purchase of radio stations.
The financing expands a $320 million credit agreement from 1992, which included a $115 million acquisition loan.
In expanding and amending the 1992 agreement, the banks also lowered the pricing on the loans, and permitted Infinity to purchase up to $50 million of its common stock.
Based in New York, Infinity is the nation's largest radio broadcaster.
Fined by the FCC
The company employs syndicated talk-show host Howard Stern, who's brand of "shock" humor was the subject of a widely publicized obscenity fine by the Federal Communications Commission in 1992. In addition to his talk-show duties, Mr. Stern is running for governor of New York, with the backing of the Libertarian Party.
Farid Suleman, Infinity's chief financial officer, said the new funds would be used in part to pay for two pending deals totaling about $75 million.
Pricing under the original credit agreement ranged from 162.5 basis points to 200 basis points over the London inter-bank offered rate, depending on Infinity's ratio of senior debt to cash flow. Under the amended agreement, the range has been reset at 125 to 225 basis points over Libor, and the ratio is now based on total debt to cash flow.
Present in 23 Major Markets
Infinity owns 23 radio stations in major markets.
Chase is agent of the Infinity bank group, and Bank of Montreal, Bank of New York, and Chemical Bank are coagents.
Other banks in the group are: First National Bank of Boston, Compagnie Financiere de CIC et de l'Union Europeenne, Canadian Imperial Bank of Commerce, Banque Paribas, National Westminster Bank USA, Union Bank, ABN Amro Bank, Banque Nationale de Paris, Bank of Nova Scotia, Continental Bank, National Bank of Canada, Bank of California, Core-States Bank, and Society National Bank.