Big City Radio Receives Bridge Loan.
September 16, 2001
Big City Radio, Inc. YFM announced that it has received a $15 million bridge loan from UBS Warburg LLC.
As previously announced, the Company did not make the interest payment on its 11 1/4% Senior Discount Notes due 2005 that was due on September 15th, 2001. Under the Indenture governing the Notes, the Company has a grace period until October 15, 2001 to make the interest payment.
The Company will use a portion of the proceeds from the bridge loan to make the interest payment on the Senior Notes.
The bridge loan will bear an interest rate of LIBOR plus 3.0% or the Base Rate plus 2.0%. The Company expects to repay the bridge loan in its entirety upon the consummation of the sale of the Company’s four Phoenix radio stations pursuant to an agreement that was previously announced.
