Cumulus has extended the early tender date of the private exchange offer for its 7.75% senior notes due 2019 by two weeks. This refinance started back on December 6 when Cumulus announced the plan to launch a private exchange offer for the notes.
Then, on December 13, Cumulus said the majority of the note holders have agreed to participate. No reason was given for the extension. The original tender date was December 23 and the new date is January 10. Eligible note holders that already validly tendered and not validly withdrawn their outstanding notes will not need to re-tender.
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 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.