This goes back to December 6th when Cumulus announced the plan to launch a private exchange offer for its 7.75% senior notes due in 2019. The company announced Monday evening that the majority of those note holders have agreed to participate.
Holders of approximately $349.7 million or 57.3% of the amount of outstanding notes entered into the refinancing agreement. Cumulus 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 incurred $305 million in secured debt represented by revolving loans under the company’s existing credit agreement.
Cumulus has over $2 Billion in debt and CEO Mary Berner and CFO John Abbot have been focused on how to deal with that issue.
Read more on what the company announced Monday HERE
