In order to raise capital to further pay down its debt, Audacy is offering its qualifying stockholders the ability to purchase to 5,000,000 additional shares, in the aggregate, of the Company’s Class A Common Stock and Class B Common Stock at a purchase price of $20.00 per share. All equity capital raised by the purchases will be used to repay existing debt.
Audacy says:
Pursuant to Section 4.1 of the Shareholders’ Agreement, Preemptive Offerees are holders of Common Stock, preferred stock or securities of the Company convertible into or exchangeable or exercisable for such stock (as further described in the Shareholders’ Agreement, the “Company Securities”) that, together, are equal to or greater than 0.5% of the aggregate amount of Company Securities. Preemptive Offerees are entitled to exercise their Preemptive Right to purchase, on the same terms and conditions as the Company proposes to issue the Common Stock, up to that number of such Common Stock as to preserve their percentage of ownership of Company Securities (as further described in the Shareholders’ Agreement, a “Preemptive Portion”).
The consummation of the Issuance is subject to a number of terms and conditions set forth in detail in the packet (the “Preemptive Rights Packet”) that the Company has provided to each Preemptive Offeree in accordance with Section 4.1 of the Shareholders’ Agreement. A form of the Preemptive Rights Packet may be found on the Company’s password-protected shareholder website. The Issuance is only being made pursuant to the Rights Offering Notice and subject to the terms and conditions set forth in the documents contained in the Preemptive Rights Packet. Please visit www.audacyinc.com/shareholder-services/ to access the Company’s shareholder website and for additional information.
Preemptive Offerees must return their executed Election Notice and Subscription Agreement as soon as possible (with time being of the essence), but in any event no later than December 27, 2024. If Preemptive Offerees do not deliver a completed and executed Election Notice and Subscription Agreement by December 27, 2024, they will be deemed to have automatically irrevocably and unconditionally waived any and all rights to exercise their Preemptive Right. If Preemptive Offerees do not elect to exercise their Preemptive Right, their ownership interest in the Company will be diluted as a result of the Issuance.
