Acceptable registrations in the queue through February 24 at 8:00a ET have now been activated. Enjoy! -M.W.

Terms of Use have been amended effective October 6, 2019. Make sure you are aware of the new rules! Please visit this thread for details: https://www.mibuzzboard.com/phpBB3/view ... 16&t=48619

Audacy receives a 30 day extension to perform missed debt payment

Topics of general interest that just don't fit anywhere else.
User avatar
MWmetalhead
Site Admin
Posts: 11630
Joined: Sun Oct 31, 2004 11:23 am

Audacy receives a 30 day extension to perform missed debt payment

Post by MWmetalhead » Mon Oct 30, 2023 9:25 am

An 8-K was filed this morning. They now have until November 29 to perform the payment originally due October 1 on its 2029 Notes.

This suggests to me the parties want more time to finalize a restructuring strategy.

By the way, the standard 30 day grace period on the 2027 Notes expires November 30.

I am not certain if both sets of Notes have the same trustee. I believe Deutsche is trustee of the 2029 Notes.

Edit - looks like Audacy is not going to make the interest payment due October 31 on its 1st lien Credit Agreement with JPMorgan Chase, either. Grace period on that one is only three business days. We shall see if JPM Chase agrees to forbear or amend. If they do neither, Audacy will either need to make the payment or file BK.


"Partisans demand and thrive on double standards." - Justin Amash

User avatar
audiophile
Posts: 8502
Joined: Sat Dec 04, 2004 9:21 pm
Location: Between 88 and 108 MHz.

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by audiophile » Mon Oct 30, 2023 9:37 am

Deutsche should have hired you to give a prospectus on Audacy beforehand...


Ask not what your country can do FOR you; ask what they are about to do TO YOU!!

User avatar
MWmetalhead
Site Admin
Posts: 11630
Joined: Sun Oct 31, 2004 11:23 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by MWmetalhead » Mon Oct 30, 2023 10:09 am

It would be interesting to see if they actually own any of the outstanding 2027 or 2029 Notes. They may just be a Trustee and little more at this point.

Underwriting a commercial radio broadcasting acquisition to 4x pro forma leverage based on (a) peak economic cycle conditions, (b) an unusually cheap interest rate environment and (c) unproven synergies was a dumb idea from the get go. Commercial broadcast radio has been in a state of decline for many years now and is sensitive to macroeconomic cycles. In my view, inadequate stress testing was likely performed.

It's not so much the underwriting investment bank that gets screwed in such a scenario (they earn plenty of fees regardless), it is the investors themselves who get screwed.


"Partisans demand and thrive on double standards." - Justin Amash

Mega Hertz
Posts: 4265
Joined: Fri Jun 15, 2012 10:09 pm
Location: Brighton

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by Mega Hertz » Tue Oct 31, 2023 6:51 am

A greedy radio corporation on the verge of BK? I am shocked. This is shocking.


"Internet is no more like radio than intravenous feeding is like fine dining."
-TurkeyTop

User avatar
MWmetalhead
Site Admin
Posts: 11630
Joined: Sun Oct 31, 2004 11:23 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by MWmetalhead » Wed Nov 15, 2023 7:07 am

Keep an eye on this weekend. I think Audacy might file on Sunday night. No guarantees, of course.

JPM Chase has granted two grace period extensions on its 1st lien Credit Agreement so far; the one announced this morning is only good for three business days (meaning expiry now occurs this coming Monday).


"Partisans demand and thrive on double standards." - Justin Amash

Mega Hertz
Posts: 4265
Joined: Fri Jun 15, 2012 10:09 pm
Location: Brighton

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by Mega Hertz » Wed Nov 15, 2023 6:32 pm

Break it up, sell me 98.7, I'll run this bitch.


"Internet is no more like radio than intravenous feeding is like fine dining."
-TurkeyTop

User avatar
ZenithCKLW
Posts: 829
Joined: Sat Nov 13, 2004 11:21 am
Location: Livonia, MI

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by ZenithCKLW » Wed Nov 15, 2023 7:12 pm

I'll take 1270. I'll trade this Bed Bath and Beyond gift card I have for it.



User avatar
Colonel Flagg
Posts: 1335
Joined: Tue Nov 18, 2008 3:54 pm

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by Colonel Flagg » Fri Nov 17, 2023 2:30 pm

Mega Hertz wrote:
Wed Nov 15, 2023 6:32 pm
Break it up, sell me 98.7, I'll run this bitch.
To save money, you will be broadcasting from the long abandoned studios at the transmitter, on Lyndon St in Detroit. There might be a little extra money in the budget for an extra layer of razor wire. :smokin

The guys from Doubleday who launched Wheels in 1980 did it. So can you. :lol


"Pretty soon, every kid in America will wish he were me"

Mega Hertz
Posts: 4265
Joined: Fri Jun 15, 2012 10:09 pm
Location: Brighton

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by Mega Hertz » Fri Nov 17, 2023 6:45 pm

Colonel Flagg wrote:
Fri Nov 17, 2023 2:30 pm
Mega Hertz wrote:
Wed Nov 15, 2023 6:32 pm
Break it up, sell me 98.7, I'll run this bitch.
To save money, you will be broadcasting from the long abandoned studios at the transmitter, on Lyndon St in Detroit. There might be a little extra money in the budget for an extra layer of razor wire. :smokin

The guys from Doubleday who launched Wheels in 1980 did it. So can you. :lol
I'll bring the WBFG calls back, make it stand for "we're being fucking great".


"Internet is no more like radio than intravenous feeding is like fine dining."
-TurkeyTop

User avatar
TC Talks
Posts: 9897
Joined: Wed Oct 26, 2005 2:41 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by TC Talks » Fri Nov 17, 2023 10:13 pm

I'll invest only if Neckbeard does overnights


“The more you can increase fear of drugs, crime, welfare mothers, immigrants and aliens, the more you control all of the people.”
― Noam Chomsky

Posting Content © 2024 TC Talks Holdings LP.

User avatar
audiophile
Posts: 8502
Joined: Sat Dec 04, 2004 9:21 pm
Location: Between 88 and 108 MHz.

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by audiophile » Sat Nov 18, 2023 9:09 am

MWmetalhead wrote:
Wed Nov 15, 2023 7:07 am
Keep an eye on this weekend. I think Audacy might file on Sunday night. No guarantees, of course.

JPM Chase has granted two grace period extensions on its 1st lien Credit Agreement so far; the one announced this morning is only good for three business days (meaning expiry now occurs this coming Monday).
How much is Chase on the hook for?


Ask not what your country can do FOR you; ask what they are about to do TO YOU!!

User avatar
TC Talks
Posts: 9897
Joined: Wed Oct 26, 2005 2:41 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by TC Talks » Sat Nov 18, 2023 4:28 pm

audiophile wrote:
Sat Nov 18, 2023 9:09 am
MWmetalhead wrote:
Wed Nov 15, 2023 7:07 am
Keep an eye on this weekend. I think Audacy might file on Sunday night. No guarantees, of course.

JPM Chase has granted two grace period extensions on its 1st lien Credit Agreement so far; the one announced this morning is only good for three business days (meaning expiry now occurs this coming Monday).
How much is Chase on the hook for?
Radio broadcaster Audacy has engaged in discussions with two groups of creditors to restructure around $1.9 billion in debt, the company confirmed on Tuesday.
....

While Audacy continues to work through its issues, the company’s top executives are still being paid well. Two weeks ago, Audacy revealed its CEO and five other senior executives were paid a collective $3.2 million in retention bonuses, which were approved by shareholders.
Always love to see the whole retention bonus thing. They fucked it all up, but we need them.


“The more you can increase fear of drugs, crime, welfare mothers, immigrants and aliens, the more you control all of the people.”
― Noam Chomsky

Posting Content © 2024 TC Talks Holdings LP.

User avatar
MWmetalhead
Site Admin
Posts: 11630
Joined: Sun Oct 31, 2004 11:23 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by MWmetalhead » Fri Nov 24, 2023 6:13 pm

Chase granted an additional extension on Monday, so now their payment grace period is good until November 30.

The term debt and revolver under the 1st lien Credit Agreement, which is administered by JPM Chase, most likely is a syndicated transaction, meaning a consortium of lenders is involved. Thus, it is unclear what portion of the 1st lien debt is actually held by JPM Chase. Per September 30's Form 10Q, there was $219 million outstanding on the Revolver and $632.4 million outstanding on the Term Loan.

My personal view is the enterprise value of Audacy is less than the face value of the 1st lien debt.

There is also $1 billion of second lien notes (the "2027 Notes" and the "2029 Notes") outstanding; these debt holders at best would receive a few pennies on the dollar of cash or non-cash consideration in a debt restructuring.


"Partisans demand and thrive on double standards." - Justin Amash

Mega Hertz
Posts: 4265
Joined: Fri Jun 15, 2012 10:09 pm
Location: Brighton

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by Mega Hertz » Fri Nov 24, 2023 7:18 pm

Jesus H. Christ, MW. English!


"Internet is no more like radio than intravenous feeding is like fine dining."
-TurkeyTop

User avatar
TC Talks
Posts: 9897
Joined: Wed Oct 26, 2005 2:41 am

Re: Audacy receives a 30 day extension to perform missed debt payment

Post by TC Talks » Sat Nov 25, 2023 9:49 am

MWmetalhead wrote:
Fri Nov 24, 2023 6:13 pm
There is also $1 billion of second lien notes (the "2027 Notes" and the "2029 Notes") outstanding; these debt holders at best would receive a few pennies on the dollar of cash or non-cash consideration in a debt restructuring.
I never understood why anyone would get in a second position for almost any debt of this size.

How did Clear Channel ever manage the 13 billion dollars they had outstanding? I don't really pay close attention.


“The more you can increase fear of drugs, crime, welfare mothers, immigrants and aliens, the more you control all of the people.”
― Noam Chomsky

Posting Content © 2024 TC Talks Holdings LP.

Post Reply Previous topicNext topic