“We are pleased to have successfully achieved all of our restructuring goals, emerging with an outstanding balance sheet, delivering industry-leading growth, serving our listeners and advertisers with excellence and honoring our commitments to employees and partners,” said David Field, who will continue as President/CEO of Audacy Inc.
He added that Audacy, founded by his father, Joseph Field, as Entercom is embarking on its next chapter by going private.
“We are maximizing a broad set of opportunities to further accelerate our growth for the benefit of Audacy and all of its stakeholders,” Field said.
As RBR+TVBR reported on Monday morning (9/30), a divided FCC saw its three Democrats vote in favor of Audacy’s restructuring plan in a move that gives the company a foreign ownership waiver without a Petition for Declaratory Ruling — something both Republican Commissioners blasted. It also gives Soros Fund Management majority control of Audacy.
The FCC’s decision, revealed this morning but reached September 18, put the wheels in motion for a rapid emergence from Chapter 11 bankruptcy protection for Audacy, which won approval from a Houston federal bankruptcy court judge in February for its plan but has been stymied inside the Beltway by conservative Republicans who insist liberal and Democratic supporter George Soros will gain editorial control of stations including its all-News properties acquired in the CBS Radio merger.
At 3pm Pacific, Audacy revealed that it had completed a “fully consensual, deleveraging transaction” that equitized approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to $350 million. “The company emerges as a healthy, scaled, multi-platform leader in the dynamic audio sector, with total net leverage of approximately 2.7x,” Audacy said.
While there had been industry chatter and speculation that Field would relinquish his chief executive role while remaining on the Board of Directors, Audacy confirmed that the company will continue to be led by David Field, retaining his post as President/CEO. Audacy’s existing management team also remains in place.
What is changing is “AUDA” — it will soon disappear, as was the post-bankruptcy plan all along.
“In conjunction with the completion of its restructuring, Audacy is expected to become a private company,” it confirmed.
Ahead of the close of trading on Monday, “AUDAQ” shares shot up by 54.5% — to $0.1699 per share.
