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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowEmmis Communications Corp. is seeking to reduce debt by paying down its term loan with excess cash flow.
The Indianapolis-based operator of radio stations from Hot 97 in New York to Power 106 in Los Angeles expects free cash flow after capital expenditures to be about $14 million this year, said Jeffrey Smulyan, chairman and CEO of Emmis.
The company owed $63 million as of Aug. 31 on a term loan due December 2017 and $5 million on a revolving line of credit, Kate Snedeker, an Emmis spokeswoman, wrote in an email.
The company is seeking to reduce its ratio of senior debt to earnings before interest, taxes, depreciation and amortization to less than 2-to-1, Smulyan said. It was 3.12 times as of Aug. 31, according to a regulatory filing. Emmis doesn’t include $77.1 million of nonrecourse debt in the calculation.
Emmis Communications Corp. reported a 4-percent increase in revenue, to $55 million, during its most recent quarter and a profit of $2.6 million, or 6 cents a share.
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