Primedia, the B2B media firm which has shed off a huge portion of its assets over the last two years, has received a financing commitment of $350 million that will allow it to retire its existing debt. As we reported in May, Primedia sold off its Enthusiast Media division to a firm controlled by Ron Burkle for $1.2 billion to extinguish the bulk of its former $1.3 billion debt. This new financing will come from Credit Suisse, Bank of New York, Lehman Brothers and Citigroup.
The $350 million financing, identified as a secured credit facility, is made up of a $100 million revolving loan facility and a $250 million term loan. In addition to removing the remaining debt, the financing will provide a one-time dividend of about $96 million to Primedia shareholders, pay transaction expenses and support the company’s business development plans. Primedia also plans on instituting an ongoing dividend in a range of 50- to 70 percent of free cash flow. The transaction is expected to close by the end of this month or by early August. Release
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