Assertions that the refinancing will require Entercom to pay a much greater interest rate fly in the face of the evidence.
The current financing was obtained in 2007, when the "radio is dying" theory was already quite widespread. Then we have the slap-on-the-wrist $5.2 million amendment fee on roughly $700 million in debt just six months ago without any large, punitive increase in the interest rate.
The market doesn't tell me what Entercom is worth. It just dangles opportunities in front of me. In fact, the price is falling as I type this. My reaction? "Opportunity knocks!" I'll enter a bid for 5k at $6.61. Feel free to front-run me by a penny to cover.
That is just not the case. Look around. Financing is expensive and will remain expensive for any economically sensetive, high debt burden venture. It is particularly the case for a company with more debt than market value assets and for one based upon intangible assets which are becoming more intangible every day as apple, rim, HP, dell move the educated to mobile web and sat rad take listeners with money to burn.