Cumulus Extends Early Tender Date Again
The early tender date of Cumulus Media‘s private exchange offer for its 7.75% Senior Notes due 2019 has been extended again by the debt-burdened owner of radio stations across the U.S.
The latest extension of the offer set the Early Tender Date of Feb. 13 at 5 p.m. That date has come and gone, and Cumulus is still not satisfied with the number of takers of its offer. Thus, it has engaged in a fourth extension, with an expiry date of 5 p.m. on March 6.
Originally, the Early Tender Date was set for Dec. 23, 2016, at 5 p.m. This was first extended to Jan. 10, with the end-of-year holidays given as a primary reason for the extension.
A second extension set the Early Tender Date to Jan. 23. The offer was then extended a third time, with the Feb. 13 date.
Cumulus shares were flat in midday trading on Wednesday (2/15), at $1.05 per share.
Cumulus, the nation’s second-largest owner of AM and FM radio stations, received bondholder approval in early December for a debt for equity deal that is designed to reduce its towering $2.4 billion funds in arrears.
Specifically, a Refinancing Support Agreement with supporting noteholders of approximately $349.7 million, or 57.3%, of the aggregate principal amount of its outstanding 7.75% Senior Notes due 2019 was given bondholder OK.
Cumulus did not comment on why this fourth extension was made, putting the new Early Tender Date more than 10 weeks after the company originally envisioned it would transpire.
The Exchange Offer expires on March 13.