Sharing Audacy’s announcement from yesterday morning that the company has reached an agreement with a supermajority of its debtholders on a financial restructuring that will significantly deleverage Audacy’s balance sheet and further position Audacy for long-term growth. The release contains a company statement. A few summary points on the news:
The agreement is a very positive outcome to ongoing discussions Audacy initiated with its lenders last year. It will establish a robust capital structure that enables Audacy to capitalize on its strategic transformation into a scaled, leading multi-platform audio content and entertainment company.
Audacy and its debtholders will undertake a deleveraging transaction that will equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million.
To implement the agreement, Audacy has commenced a prepackaged Chapter 11 process, which demonstrates debtholders’ strong support for Audacy’s future and will allow for a quicker and more streamlined process. Audacy expects that the Court will hold a confirmation hearing in February and to emerge from bankruptcy once it receives FCC approval.
Audacy continues business as usual and does not expect any operational impact from the restructuring. Trade and other unsecured creditors will not be impaired.
