FOR IMMEDIATE RELEASE Contact:
Ellen Strahs Fader
(212) 424-6863
KATZ MEDIA GROUP, INC. AND KATZ MEDIA CORPORATION
ANNOUNCE COMPLETION OF REFINANCING
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NEW YORK, NY, December 19, 1996 -- Katz Media Group, Inc., (AMEX:KTZ), the only
full- service media representation firm in the United States serving all types
of broadcast media, and its wholly-owned subsidiary, Katz Media Corporation,
today announced the successful completion of the previously announced
refinancing, designed to increase the availability of funds for working capital
purposes and enhance the Company's financial and operating flexibility.
Katz Media Corporation has today accepted for payment $97.7 million
principal amount of its 12 3/4% Senior Subordinated Notes due 2002 (the
"Notes"), representing substantially all of the outstanding Notes. Each holder
who validly tendered Notes on or prior to December 12, 1996 will receive a cash
payment equal to $1,125.01 for each $1,000 principal amount of Notes (based on
the price determination date in the repurchase offer of December 16, 1996),
which includes the $10 consent fee and $12.01 of accrued and unpaid interest.
Holders who tendered Notes after December 12, 1996 will not receive the $10
consent fee.
The Company has also completed a private offering under Rule 144A of
the Securities Act of 1933 of a new issue of fixed rate notes, consisting of
$100 million principal amount of 10 1/2% Senior Subordinated Notes due 2007,
which were priced at par, and has refinance its existing credit facility with a
new revolving credit and term loan facility providing for loans of up to $180
million.
As a result of the refinancing, the Company has available an aggregate
of approximately $63.3 million under the new credit facility for working capital
purposes, including the purchase of representation contracts, potential
acquisitions and other general corporate purposes, and the possible repurchase
by the Company of its common stock from time to time in the open market. Of the
aggregate available amount, approximately $44.4 million is immediately available
and the remainder will become available in the future, subject to the
achievement of certain financial ratios and compliance with certain other
conditions.
The new notes were sold in a private offering through Donaldson,
Lufkin & Jenrette Securities Corporation ("DLJ"). DLJ also acted as the arranger
for the new credit facility, with DLJ Capital Funding, Inc., an affiliate of
DLJ, as the syndication agent and The First National Bank of Boston as the
administrative agent for the new credit facility.
The new notes have not been registered under the Securities Act of
1933, and may not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements.
Katz Media Group, Inc., headquartered in New York City, is the only
full-service media representation firm in the United States, serving multiple
types of electronic media, with leading market shares in the representation of
radio and television stations, cable television systems and interactive,
internet media outlets. The company is exclusively retained by more than 2,000
radio stations, 340 television stations, 1,390 cable television systems with an
aggregate of approximately 36.8 million subscribers and a growing number of
Internet Web sites and other interactive media providers to sell national
advertising time throughout the United States and through its Katz International
subsidiary in the United Kingdom. The company's stock is traded on the American
Stock Exchange under the ticker symbol "KTZ".
Additional information about the company can be obtained via the World
Wide Web at http://www.katz-media.com.