v3.20.2

LONG-TERM DEBT | 9 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt was comprised of the following as of the periods indicated:
| Long-Term Debt
| September 30, 2020 |  | December 31, 2019
| (amounts in thousands)
Credit Facility |  |  |
Revolver | $ | 77,727 |  |  | $ | 117,000 |
Term B-2 Loan, due November 17, 2024 | 755,378 |  |  | 770,000 |
Plus unamortized premium | 1,752 |  |  | 1,968 |
| 834,857 |  |  | 888,968 |
Notes |  |  |
6.500% notes due May 1, 2027 | 425,000 |  |  | 425,000 |
Plus unamortized premium | 4,489 |  |  | 5,000 |
| 429,489 |  |  | 430,000 |
Senior Notes |  |  |
7.25% senior unsecured notes, due November 1, 2024 | 400,000 |  |  | 400,000 |
Plus unamortized premium | 9,912 |  |  | 11,732 |
| 409,912 |  |  | 411,732 |
Other debt | 808 |  |  | 873 |
Total debt before deferred financing costs | 1,675,066 |  |  | 1,731,573 |
Current amount of long-term debt | (5,488) |  |  | (16,377) |
Deferred financing costs (excludes the revolving credit) | (15,395) |  |  | (18,082) |
Total long-term debt | $ | 1,654,183 |  |  | $ | 1,697,114 |
Outstanding standby letters of credit | $ | 6,834 |  |  | $ | 5,862 |
(A) Senior Debt The Company's credit agreement (the "Credit Facility") has usual and customary covenants including, but not limited to, a net first lien leverage ratio, restricted payments and the incurrence of additional debt. Specifically, the Credit Facility requires the Company to comply with a certain financial covenant which is a defined term within the agreement, including a maximum Consolidated Net First-Lien Leverage Ratio that cannot exceed 4.0 times. In certain circumstances, if the Company consummates additional acquisition activity permitted under the terms of the Credit Facility, the Consolidated Net First-Lien Leverage Ratio will be increased to 4.5 times for a one year period following the consummation of such permitted acquisition. Credit Facility - Amendment No. 5 On July 20, 2020, Entercom Media Corp., a wholly-owned subsidiary of the Company, entered into an amendment ("Amendment No. 5") to the Credit Agreement, dated October 17, 2016 (as previously amended, the "Existing Credit Agreement" and, as amended by Amendment No. 5, the "Credit Agreement"), with the guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. Amendment No. 5, among other things: (a) amended the Company's financial covenants under the Credit Agreement by: (i) suspending the testing of the Consolidated Net First Lien Leverage Ratio (as defined in the Credit Agreement) through the Test Period (as defined in the Credit Agreement) ending December 31, 2020; (ii) adding a new minimum liquidity covenant of $75.0 million until December 31, 2021, or such earlier date as the Company may elect (the "Covenant Relief Period"); and (iii) imposing certain restrictions during the Covenant Relief Period, including among other things, certain limitations on incurring additional indebtedness and liens, making restricted payments or investments, redeeming notes and entering into certain sale and lease-back transactions; (b) increased the interest rate and/or fees under the Credit Agreement during the Covenant Relief Period applicable to: (i) 2024 Revolving Credit Loans (as defined in the Credit Agreement) to (x) in the case of Eurodollar Rate Loans (as defined in the Credit Agreement), a customary Eurodollar rate formula plus a margin of 2.50% per annum, and (y) in the case of Base Rate Loans (as defined in the Credit Agreement), a customary base rate formula plus a margin of 1.50% per annum, and (ii) Letter of Credit (as defined in the Credit Agreement) fees to 2.50% times the daily maximum amount available to be drawn under any such Letter of Credit; and (c) modified the definition of Consolidated EBITDA by setting fixed amounts for the fiscal quarters ending June 30, 2020, September 30, 2020, and December 31, 2020, for purposes of testing compliance with the Consolidated Net First Lien Leverage Ratio financial covenant during the Covenant Relief Period, which fixed amounts correspond to the Borrower's Consolidated EBITDA as reported under the Existing Credit Agreement for the Test Period ended March 31, 2020, for the fiscal quarters ending June 30, 2019, September 30, 2019, and December 31, 2019, respectively. Failure to comply with the Company’s financial covenant or other terms of its Credit Facility and any subsequent failure to negotiate and obtain any required relief from its lenders could result in a default under the Company’s Credit Facility. Any event of default could have a material adverse effect on the Company’s business and financial condition. The acceleration of the Company’s debt repayment could have a material adverse effect on its business. The Company may seek from time to time to amend its Credit Facility or obtain other funding or additional funding, which may result in higher interest rates. As of September 30, 2020, the Company is in compliance with the financial covenant and all other terms of the Credit Facility in all material respects. The Company’s ability to maintain compliance with its covenant is highly dependent on its results of operations. The cash available from the Revolver is dependent on the Company’s Consolidated Net First-Lien Leverage Ratio at the time of such borrowing. (B) Net Interest Expense The components of net interest expense are as follows:
| Net Interest Expense
| Nine Months Ended September 30,
| 2020 |  | 2019
| (amounts in thousands)
Interest expense | $ | 65,783 |  |  | $ | 76,190 |
Amortization of deferred financing costs | 2,942 |  |  | 2,227 |
Amortization of original issue discount (premium) of senior notes | (2,546) |  |  | (2,248) |
Interest income and other investment income | (70) |  |  | (749) |
Total net interest expense | $ | 66,109 |  |  | $ | 75,420 |
| Net Interest Expense
| Three Months Ended September 30,
| 2020 |  | 2019
| (amounts in thousands)
Interest expense | $ | 20,723 |  |  | $ | 25,203 |
Amortization of deferred financing costs | 999 |  |  | 755 |
Amortization of original issue discount (premium) of senior notes | (849) |  |  | (678) |
Interest income and other investment income | (27) |  |  | (24) |
Total net interest expense | $ | 20,846 |  |  | $ | 25,256 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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