After receiving FCC approval earlier today, Audacy has announced the completion of its financial restructuring as it exits Chapter 11 bankruptcy protection.
Audacy says it has implemented “a fully consensual, deleveraging transaction that equitized approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to $350 million emerging as a healthy, scaled, multi-platform leader in the dynamic audio sector, with total net leverage of approximately 2.7x, differentiated by its #1 position in exclusive, premium audio content.
David Field will continue to serve as President/CEO with its existing management team remaining in place. Field will also serve on the new Board of Directors.
Field said, “We are pleased to have successfully achieved all of our restructuring goals, emerging with an outstanding balance sheet, delivering industry-leading growth, serving our listeners and advertisers with excellence and honoring our commitments to employees and partners. Today, Audacy embarks on our next chapter, capitalizing on our position as a scaled, multi-platform audio leader, differentiated by our exclusive, premium audio content, including our unrivaled leadership in sports audio, powered by our industry-leading financial strength and focused on accelerating our innovation and digital transformation. We are maximizing a broad set of opportunities to further accelerate our growth for the benefit of Audacy and all of its stakeholders.”
With the completion of its restructuring Audacy will become a privately held company. Laurel Tree Opportunities Corporation will hold at 57% controlling stake in the company. Led by trustees Leonard Benardo, Maryann Canfield, Alexander Soros, and Michael Vachon, the company is financed by the George Soros founded Fund for Policy Reform. Five Hour Energy founder Manoj Bhargava, who attempted a hostile takeover of Cumulus Media earlier this year, will hold 9.5% through his MBX Commercial Finance LLC.
PJT Partners served as investment banker, Latham & Watkins LLP served as legal counsel and FTI Consulting served as financial advisor to Audacy. Greenhill & Co., LLC acted as financial advisor and Gibson, Dunn & Crutcher LLP acted as legal counsel to the DIP financing lenders and the ad hoc group of first lien debtholders. Evercore Group, LLC acted as financial advisor and Akin Gump Strauss Hauer & Feld acted as legal counsel to the ad hoc group of second-lien debtholders.
