An offering to a selection of Audacy Inc.’s qualifying stockholders giving them the opportunity to exercise their preemptive right under the company’s shareholders’ agreement to purchase up to 5 million additional shares of Class A and Class B common stock has been terminated.
Why, after less than one month since it was announced?
The privately held company with a majority of its outstanding shares held by Soros Fund Management said in an announcement posted Monday to Business Wire (and not shared elsewhere) that it has determined that it would not receive the approvals necessary to increase its share capital, which is necessary to effect the issuance.
Audacy announced on December 16 that it planned to raise $100 million from the offering, with a strike price of $20 per share. The proceeds were to be used to pay down its current debt.
Presumptive offerings had until Friday, December 27, to act on the offer for Audacy Class A and Class B common stock.
It is not clear what the company founded as Entercom under Joseph Field and today led by his son, David Field, intends to do next to address its long-term debt.
Stockholders are asked to contact Latham & Watkins LLP at [email protected] with any additional questions.
