Banks began a roadshow Monday for Citadel Broadcasting's $500 million junk bond deal. A $400 million credit facility has also been arranged for the Las Vegas radio station owner.
Lead bookrunner JPMorgan Chase & Co. is joined by Credit Suisse in conducting the roadshow for the $500 million in senior notes due 2018, which is expected to end Dec. 6 with the deal's pricing. JPMorgan Chase has also arranged a $400 million credit facility, and it met with potential investors Monday, according to sources. The loan package includes a $250 million term loan due 2016 and a $150 million revolver due 2013.
Both the bonds and loans are to be used to refinance an existing credit facility. The company declared bankruptcy last year with support from more than 60% of its secured lenders for a prepackaged restructuring. It emerged from bankruptcy last June.
Citadel Broadcasting owns and operates 58 AM radio stations and 166 FM stations in 50 U.S. markets.