Audacy, a prominent multi-platform audio content and entertainment company, announced a significant development in its financial restructuring. This announcement, made yesterday morning, outlined an agreement with a majority of its debtholders that marks a crucial step in the company’s strategic transformation.
Key points of the announcement include:
Initiation of Discussions
The agreement follows discussions Audacy initiated last year with its lenders, aiming to establish a robust capital structure.
Deleveraging Transaction
As part of the restructuring, Audacy and its debtholders will execute a transaction to equitize about $1.6 billion of funded debt. This move will reduce the company’s debt from approximately $1.9 billion to around $350 million, a significant decrease of 80%.
Prepackaged Chapter 11 Process
To implement this agreement, Audacy has commenced a prepackaged Chapter 11 process. This decision, reflecting strong support from debtholders, is intended to expedite and streamline the restructuring process. The Court is expected to hold a confirmation hearing in February, with Audacy aiming to emerge from bankruptcy following approval from the FCC.
Operational Continuity
Audacy emphasizes that it will continue its business operations as usual. The restructuring is not anticipated to impact its operations, and trade and other unsecured creditors will not be impaired.
This strategic move is seen as a positive outcome for Audacy, positioning it for long-term growth and allowing it to capitalize on its transformation into a leading audio content provider.
