NextMedia Group exits Chapter 11


Radio and outdoor advertising owner NextMedia Group announced Tuesday, June 1, that it had completed its financial reorganization and emerged from Chapter 11 protection from creditors. The company notes that, as provided for in the reorg plan, it is in the process of satisfying all remaining obligations to its vendors and landlords, in full.

“With the completion of our reorganization well within the accelerated timetable we set for ourselves, we have strengthened our financial position and are now solely focused on the execution of our operating and strategic plans,” said Steve Dinetz, President and CEO.  “The process has had no impact on our day-to-day operations, and did not result in any changes to our management team or employee headcount. Indeed, we continued to invest in our operations while restructuring – notably adding to our roster of digital outdoor displays and building out Nextmedia360, our cross-platform radio and digital initiative. With our customer centric focus and strong financial footing, we are well positioned to continue to serve our clients, invest in our businesses and capitalize on the improving advertising environment,” he added.

NextMedia said it has emerged from the reorganization with $135 million in new debt financing, representing a net debt-to-EBITDA ratio of approximately 5.2x, and a new $55 million equity investment from new investors.

The Chapter 11 filing was made in December, with NextMedia owing $162.3 million to its 1st lien lenders, headed by Wilmington Trust as agent, and $89.6 million to 2nd lien holders, headed by NexBank.

Those 2nd lien holders agreed to convert their debt to equity and invest $55 million in new equity, whereby they ended up owning 95% of the company’s equity.

NextMedia Group owns and operates 33 AM and FM radio stations, as well as over 5,700 outdoor advertising displays across several regions and markets.

RBR-TVBR observation: NextMedia made its federal bankruptcy court filing a day after Citadel Broadcasting. NextMedia has completed its reorg in just a little over five months. Citadel, a much larger company, should be exiting Chapter 11 any day now as well. With any luck, bankruptcy filings by broadcasters will become much less common now that the ad marketplace is improving.