$54.6 million bonds for refunding and debt consolidation for non-profit radio broadcaster
We were bond counsel for the issuance of $54.6 million bonds through the Public Finance Authority for the refunding and consolidation of debt for a non-profit radio broadcast organization. The California-based broadcaster, which has stations throughout the country, specializes in contemporary religious-themed music and non-sectarian educational programming. Our client sought to refinance the costs of the acquisition of 17 FCC licenses for stations located in thirteen states through the issuance of tax-exempt bonds, so we worked to consolidate its debt into one loan, which was privately placed with a consortium of banks. Initially, we closed the loan with a split between tax-exempt and taxable bonds. Over the nine months after closing, we set up local governmental hearings that are federally required in order for the taxable bonds to be converted to tax-exempt and were successful in converting about 65%. Our work enabled the client to successfully consolidate its debt and substantially reduce interest costs.