Audacy receives a 30 day extension to perform missed debt payment

[MWmetalhead]

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.

[audiophile]

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

[MWmetalhead]

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.

[Mega Hertz]

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

[MWmetalhead]

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).

[Mega Hertz]

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

[ZenithCKLW]

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

[Colonel Flagg]

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.

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

[Mega Hertz]

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.

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

I'll bring the WBFG calls back, make it stand for "we're being fucking great".

[TC Talks]

I'll invest only if Neckbeard does overnights

[audiophile]

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?

[TC Talks]

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.

[MWmetalhead]

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.

[Mega Hertz]

Jesus H. Christ, MW. English!

[TC Talks]

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.