Is Cumulus having trouble getting debtholders to buy into their refinance plan? On Wednesday, Cumulus again extended the expiration date and early tender date for its previously announced private exchange offer for its 2019 7.75% senior notes. In late December, Cumulus extended the early tender date by two weeks. That deadline was Wednesday, and has been extended to January 23. The expiration for the exchange offer has been extended to March 23, the original deadline was also Wednesday.
This refinance started back on December 6 when Cumulus announced the plan to launch a private exchange offer for the notes. On December 13, Cumulus said the majority of the note holders have agreed to participate. The original tender date was December 23 and the new date was pushed to January 10. As of now, holders of $431,307,000 (70.7%) of the outstanding notes have signed onto the refi.
Cumulus has more than $2 billion in debt and the company is attempting to refinance the notes and reduce and extend the maturity of the debt. Upon completion, former noteholders will hold approximately 33.3% of the common equity of Cumulus, and the company will retire $610 million in outstanding unsecured debt and have incurred $305 million in secured debt represented by revolving loans under the company’s existing credit agreement.
Also in December, Cumulus filed a lawsuit against JP Morgan accusing the firm of thwarting its refinance plan by breaching a 2013 credit agreement and unreasonably withholding consent to the refinance.