MediaCo’s lenders are handing it another short runway. The multicultural broadcaster has secured a one-month extension on a key loan, but the agent’s acknowledgment that defaults are continuing keeps the pressure on a company already carrying a going concern warning from its auditors.
MediaCo Holding entered into a Third Amendment on November 2 to its First Lien Term Loan Credit Agreement, dated April 17, 2024, according to a Form 8-K filed with the SEC. The amendment extends the maturity of the Delayed Draw Term Loans from October 31 to the earliest of November 30, the date the loans are accelerated or deemed accelerated, or the date 91 days before the maturity of any other debt above a threshold set in the credit agreement.
WhiteHawk Capital Partners, the administrative agent and collateral agent, acknowledged in the amendment that certain Defaults and/or Events of Default have occurred and are continuing. The agent and the lenders reserved all of their rights and remedies. MediaCo and the other loan parties reaffirmed their obligations and the security interests granted under the loan documents, and released the agent and lenders from known claims arising on or before the date of the amendment. The filing does not specify the defaults.
MediaCo expects to file the full text of the amendment as an exhibit to its Form 10-K for the fiscal year ending December 31, 2026.
WhiteHawk and HPS Investment Partners issued a waiver on August 14 after MediaCo failed to satisfy the Audio Adjusted EBITDA covenant under its credit agreements. The company reclassified $63.3 million of previously long-term debt as current, and a separate amendment that month moved the maturity of the Delayed Draw Term Loans from July 30 to October 31. In April, MediaCo’s auditors at Deloitte issued a going concern warning citing near-term debt maturities, a working capital deficit, and liquidity constraints.
