Entravision amends credit agreement to accelerate debt reduction

BURBANK - Entravision Communications Corporation (NYSE:EVC), a media company with a market capitalization of $225 million, announced Wednesday it has entered into a strategic amendment to its credit agreement aimed at increasing financial stability and accelerating debt reduction. According to InvestingPro data, the company has demonstrated strong revenue growth of 23% in the last twelve months, though analysts anticipate challenges in achieving profitability this year.

The media and advertising technology company’s amendment, which took effect July 15, includes increasing scheduled quarterly term loan payments to $5 million from $2.5 million. This follows a voluntary prepayment of $10 million made in the second quarter of 2025. The company maintains a healthy current ratio of 2.93, indicating strong ability to meet short-term obligations, according to InvestingPro analysis.

Additionally, Entravision reduced its revolving credit facility commitments to $30 million from $75 million, which the company says will optimize available liquidity while reducing commitment fees.

The amendment also modifies how the company’s net leverage ratio is calculated, shifting from a trailing four-quarter basis to an eight-quarter basis. The maximum permitted net leverage ratio has been increased to 4.0x from 3.25x, changes that Entravision indicated are designed to moderate the effects of cyclical political advertising revenue.

"Reducing debt is a key priority for Entravision that will provide operational and financial stability and flexibility," said Mark Boelke, Chief Financial Officer of Entravision, in the press release announcing the changes.

The company’s credit facility matures in March 2028. Further details about the amendment are available in Entravision’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.

Entravision provides video, audio and digital marketing services in the U.S. and operates an advertising technology business that delivers programmatic advertising technology globally. The company is the largest affiliate group of the Univision and UniMás television networks.

In other recent news, Entravision Communications reported a 17% increase in consolidated revenue for Q1 2025, reaching $91.85 million, although the company posted an earnings per share of -$0.53. The Ad Tech and Services segment saw significant growth, with revenue surging 57% to $50.9 million, while the Media segment experienced a 10% decline in revenue. The company ended the quarter with $78 million in cash and securities, despite an operating loss of $3.9 million. In corporate developments, Entravision entered a new executive compensation agreement with Chief Revenue Officer Juan Navarro, effective until May 2025, with a base salary of $400,000 annually. Additionally, the company’s annual stockholder meeting saw the election of eight directors and the ratification of Deloitte & Touche, LLP as the independent auditor for 2025. Analyst feedback from the earnings call highlighted Entravision’s strategic focus on digital transformation and local market penetration, with plans to maintain a dividend of $0.05 per share. The company aims for continued revenue growth and profitability, with future revenue forecasts projecting $592.85 million for FY2025 and $800.35 million for FY2026.

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