Beasley Media Group has reached a Transaction Support Agreement to help relieve some of its debt obligations.
The plan would include exchanging 100% of second-lien notes at a 50% ratio for new 10.0% Senior Secured Second Lien PIK Notes due 2027 and purchasing up to $15.899 million of first-lien notes, along with consent solicitations to amend indentures and release second-lien collateral. The new PIK Notes will feature a springing maturity and a potential equity conversion, allowing a majority of noteholders to convert the debt into up to 95% of Beasley’s equity after Dec 31, 2027, pending FCC approval and compliance with foreign ownership rules.
The noteholders will also elect an independent director to serve on Beasley’s Board of Directors. 270 days after the closing of the agreement, the noteholders will also be allowed to propose three candidates to serves as an additional independent director and to serve on a “Strategic Alternatives Committee” on the board.
