It may be privately held, but that doesn’t mean it doesn’t have similar fiscal challenges to its publicly traded peers in the U.S. broadcast media industry. Cox Media Group, majority-owned by Apollo Global Management, is moving forward with a lender offer that would see it push out its debt by two years.
Perhaps the biggest takeaway from the plan is that the interest rate will not go up, or down, if debtholders say yes.
CMG, which is 29% owned by Cox Enterprises, announced on Tuesday that it seeks to swap its 8.875% Senior Notes due 2027 for new 8.875% Second-Priority Senior Secured Notes due June 18, 2029.
Lenders that wish to participate in the exchange offer have until 5pm Eastern on November 13 (or earlier, should they be attending Forecast 2025 at the Harvard Club).
Tendered Old Notes may be validly withdrawn and consents may be revoked until 5pm Eastern on Tuesday, October 29 — unless CMG extends the withdrawal deadline.
There is an Early Tender Premium.
What if holders validly tender but do not validly withdraw their Old Notes at or prior to the Early Tender Time? They’ll get total consideration for their notes, CMG confirms.
Holders must validly tender and not validly withdraw their Old Notes at or prior to the Early Tender Time in order to be eligible to receive an early tender premium of $15 in principal amount of New Notes per $1,000 principal amount of Old Notes tendered, which is included in the Total Consideration.
Holders that validly tender and do not validly withdraw their Old Notes after the Early Tender Time and at or prior to the Expiration Time will not be eligible to receive the Early Tender Premium. As such, they will only be eligible to receive $985 principal amount of New Notes for each $1,000 principal amount of Old Notes tendered — a.k.a. “Late Consideration.”
Requisite consents are needed for the debt swap to transpire.
That shouldn’t be a problem. Tuesday also saw CMG sign a transaction support agreement in which 88% of the debtholders said yes to the plan.
