Audacy has gained an additional 30 day extension to extend the grace period before it would default on its 6.75% senior secured second-lien notes due March 31, 2029 through November 29.
Audacy skipped the approximately $18 million payment due on September 30 to use the 30-day grace period to “continue its dialogue with lenders regarding a potential plan to strengthen its capital structure to support Audacy’s strong operating business and position Audacy for long-term growth”. As it continues discussions with its lenders,
Audacy also states it will utilize the grace period for two more of its payments due this week. The company was due to make an interest payment of approximately $17 million on October 31 for its credit agreement to JPMorgan Chase Bank on Tuesday, October 31 and gains a three day grace period. Audacy also adds a 30 day grace period for its approximately $15 million due on November 1 for its 6.500% senior secured second-lien notes due May 1, 2027.
Original Report 10/2: Audacy announced this morning that it will skip the approximately $18 million payment due on September 30 to holders of its 6.75% senior secured second-lien notes due March 31, 2029 to use the 30-day grace period to “continue its dialogue with lenders regarding a potential plan to strengthen its capital structure to support Audacy’s strong operating business and position Audacy for long-term growth”.
The company says it continues discussions with its lenders to refinance its debt and optimize the Company’s balance sheet to position the Company for long-term growth, capitalizing on its scaled leadership position across the audio market. The decision does not impact any of its business operations or obligations to advertisers, employees, suppliers or other stakeholders. Audacy continues to focus on growing and enhancing its capabilities as a leading, multi-platform audio content and entertainment company.
Audacy, Inc. (NYSE: AUD; OTC: AUDA) (the “Company” or “Audacy”) today provided an update on its ongoing discussions with lenders to refinance its debt and optimize the Company’s balance sheet to position the Company for long-term growth, capitalizing on its scaled leadership position across the audio market.
To continue to facilitate its discussions with lenders, Audacy has elected to utilize the 30-day grace period for the cash interest payment in the amount of approximately $18 million, due on September 30, 2023 (and payable on October 2, 2023, the next succeeding business day), to holders of its 6.75% senior secured second-lien Notes (“the Notes”) due March 31, 2029. Audacy intends to utilize the 30-day grace period to continue its dialogue with lenders regarding a potential plan to strengthen its capital structure to support Audacy’s strong operating business and position Audacy for long-term growth.
Audacy’s decision does not impact any of its business operations or obligations to advertisers, employees, suppliers or other stakeholders. Audacy continues to focus on growing and enhancing its capabilities as a leading, multi-platform audio content and entertainment company.
“We continue to engage in discussions with our lenders as we execute on our overall growth strategy and remain focused on investing in our people, platform, content and technology capabilities to serve our listeners and customers,” said David Field, Chairman, President and Chief Executive Officer of Audacy. “We continue to drive progress across our key performance metrics, meaningfully advance our ad tech and product roadmap and enter new partnerships to enhance content, distribution and monetization opportunities.”
The decision to utilize the grace period will not trigger an event of default under the indenture governing the Notes, and the Company retains the right to make the interest payment to the holders of the Notes through the end of the grace period.
