One of the nation's most influential broadcasters takes a significant step towards a sustainable future by refinancing tax-exempt bonds and financing new strategic investments. Financial Advisor: Janney Montgomery Scott
- On January 31, 2018 Janney arranged for the private placement of $35 million of taxable debt purchased by a commercial banking organization on behalf of New York Public Radio (“NYPR”).
- The purposes of the transaction were to enable NYPR to retire its outstanding Series 2006 tax exempt bonds, to finance the termination of an interest rate swap associated with those bonds and to provide NYPR with sufficient funds to make strategic investments over the next two to three years in its four “pillar” investments.
- The pillar investments are: (1) expanding WNYC Studios in New York City, (2) developing a digital audio platform, (3) supporting WNYC news programming and community engagement and (4) building a national classical music service.
- Janney Montgomery Scott served as Financial Advisor for the 2018 financing and placed the debt with a commercial bank.
- The bank direct purchase debt was structured with a 15-year fixed interest rate and a 30-year amortization. It was also structured as a drawdown loan, which will enable NYPR to draw loan proceeds only as they need them for project costs. This feature will save NYPR significantly on interest expenses over the next two years.
- The debt was structured with two primary financial covenants – debt service coverage and minimum liquidity. The debt service coverage requirement is 1.00x measured annually, which is lower than the typical 1.20x requirement.
Janney conducted a competitive request for financing proposals on behalf of NYPR. Janney prepared a comprehensive credit presentation and sent it to a group of more than 25 commercial banks seeking financing proposals. This process resulted in the receipt of multiple, competing proposals, which enabled NYPR to negotiate covenants and other terms and conditions.
About New York Public Radio
New York Public Radio - comprised of WNYC Radio, WQXR Radio, WQXW Radio, New Jersey Public Radio, WNYC Studios and The Jerome L. Greene Performance Space - is one of the nation's leading public media organizations. Founded in 1924 as the municipal radio station of the City of New York, in 1997 the WNYC Foundation purchased its broadcast license from the City, establishing WNYC as an independent non-profit. NYPR currently has over 230,000 members, making it one of the largest member-supported organizations in New York City. Combined, NYPR stations reach over 26 million listeners each month nationwide, including a terrestrial audience of 3 million in the metropolitan region, and 1.4 million listeners in the five boroughs of New York City. NYPR is a 501c3 organization.
About Janney Montgomery Scott
Janney Montgomery Scott is a full service investment banking firm dedicated to serving non-profit organizations with their debt financing needs. Janney serves its clients as an underwriter, placement agent or financial advisor.