To secondchoice - you are most welcome. 
This is Cumulus we're talking about. C'mon now - you expect them to communicate with the general public in an effective and fully truthful manner? You're asking for too much!
The Excess Cash Flow recapture provision is an "if / come" sort of thing. It is not solely based on EBITDA. Usually, such calculations are based on Adjusted EBITDA, less a basket for capital investments, less scheduled debt service, and sometimes year-over-year changes in working capital are part of the equation.
The purpose of such a provision is to enable lenders to get repaid more quickly to the extent the cash is there (instead of allowing the company to use it to go on a spending spree).
You are right the Term Lenders will basically be radio company owners if the proposed Plan or one similar to it gets confirmed! I suspect JPM Chase will form a special purpose subsidiary for purposes of holding the stock. The special purpose entity would own the 83.5% common equity stake, and each lender in turn would have an equity stake in the special purpose entity.
I've not read every nitty-gritty detail of the Restructuring Term Sheet. It would not surprise me if the Term Sheet requests a blackout period or restrictions with regard to sale of the stock in the "new co" - meaning the Banks would be prohibited from flipping the stock to an outside buyer for a period of time (other than perhaps to one another or other "friendly" parties). I'm sure Mary & friends want to make sure the banks don't have the ability to sell their shares to Lew & his allies immediately upon exit from bankruptcy. That would defeat the purpose of what Berner is trying to accomplish here.
This is Cumulus we're talking about. C'mon now - you expect them to communicate with the general public in an effective and fully truthful manner?
You're asking for too much!The Excess Cash Flow recapture provision is an "if / come" sort of thing. It is not solely based on EBITDA. Usually, such calculations are based on Adjusted EBITDA, less a basket for capital investments, less scheduled debt service, and sometimes year-over-year changes in working capital are part of the equation.
The purpose of such a provision is to enable lenders to get repaid more quickly to the extent the cash is there (instead of allowing the company to use it to go on a spending spree).
You are right the Term Lenders will basically be radio company owners if the proposed Plan or one similar to it gets confirmed! I suspect JPM Chase will form a special purpose subsidiary for purposes of holding the stock. The special purpose entity would own the 83.5% common equity stake, and each lender in turn would have an equity stake in the special purpose entity.
I've not read every nitty-gritty detail of the Restructuring Term Sheet. It would not surprise me if the Term Sheet requests a blackout period or restrictions with regard to sale of the stock in the "new co" - meaning the Banks would be prohibited from flipping the stock to an outside buyer for a period of time (other than perhaps to one another or other "friendly" parties). I'm sure Mary & friends want to make sure the banks don't have the ability to sell their shares to Lew & his allies immediately upon exit from bankruptcy. That would defeat the purpose of what Berner is trying to accomplish here.