Audacy Corp. has confirmed that it has initiated discussions with its lenders to refinance its debt and “optimize” the company’s balance sheet — something the company says it “previously stated we intended to do.”
The comments from Audacy come in response to questions surrounding a “PRO” article posted Tuesday afternoon to The Wall Street Journal‘s website that says the No. 2 radio station owner in the U.S. is beginning financial restructuring negotiations.
According to a company spokesperson, the new discussions with Audacy’s lenders are designed to position the company founded by Joseph Field as Entercom and today led by his son, David Field, “for long-term growth as we continue to invest in our people, platform, technology, content and growth initiatives.”
Audacy declined to further comment on the report, which notes that “lawyers representing two different groups of creditors have recently signed nondisclosure agreements to begin confidential discussions about restructuring Audacy’s $1.9 billion of debt.”
Specifically, WSJ reporter Alexander Gladstone quoted “people familiar with the matter” as saying a group of senior leaders has hired Gibson Dunn & Crutcher, while a group of second-lien bondholders has engaged Akin Gump Strauss Hauer & Feld.
The Wall Street Journal article’s appearance comes amid new concerns over Audacy’s stock, presently trading under the “AUDAD” symbol as an Over-the-Counter issue. Following a 1-for-30 reverse stock split, which saw the new Audacy shares reach $2.15 on July 3, “AUDAD” on July 7 dipped under the $2 mark. On Monday, Audacy stock closed at $1.80. Then came today’s trading, in which “AUDAD” fell 44 cents, to $1.36 — a 24.4% decline in just 24 hours.
Audacy has been working with restructuring advisor PJT Partners and counsel from Latham & Watkins, the WSJ PRO article notes.
Prior to joining the family business, David Field served as an investment banker at Goldman Sachs & Co. in New York.
