Cumulus Extends Its Early Tender Date In A Big Way

By on Jan, 11 2017 with Comments 0

Cumulus Media shares were flat at $1.08 on Wednesday (1/11) as the nation’s No. 2 radio owner by number of stations extended — for a second time — the expiration date and early tender date for its previously announced private exchange offer for its 7.75% Senior Notes due 2019.

The original early tender date and time was 5 pm Eastern on Dec. 23. On the Friday before Christmas an extension was made, setting the new Early Tender Date and time at 11:59 p.m. Eastern, on Jan. 10, 2017.

That date is now in the past, and it seems Cumulus has not attracted as many early tenders as it hoped for – again.

This explains why a second extension has been set, and the new early tender date has been pushed all the way back to March 13, at 5:00 pm Eastern.

Eligible holders tendering their outstanding notes prior to that new date will receive the “Total Exchange Consideration.”

As of 11:59 p.m. Eastern on Jan. 10, 2017, holders of  $431,307,000 in aggregate principal amount of the outstanding notes have validly tendered and not validly withdrawn their notes. This represents roughly 70.7% of the outstanding notes currently outstanding.

Eligible holders that have already validly tendered and not validly withdrawn their outstanding notes need not re-tender their outstanding notes.

Asked for an explanation as to the second extension, a Cumulus spokesperson said, “The company thought it in the best interest of effectuating the transaction to extend.”

About The Author: Adam R Jacobson is a veteran radio industry journalist and advertising industry analyst with general, multicultural and Hispanic market expertise. From 1996 to 2006 he served as an editor at Radio & Records.

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