Cumulus has again extended the early tender date for its private exchange offer for all 7.75% senior notes due 2019. The last old date was February 13. The new date is March 6. The previous deadline was January 23 and there were two others before that.
Back in December, Cumulus announced a debt-for-equity swap offer with the holders of $349.7 million (57.3%) of the principal amount of its outstanding 7.75% senior notes that are due in 2019. Those former noteholders will then get a 33.3% equity stake in Cumulus. The deal will allow Cumulus to retire $610 million in debt while taking out $305 million in revolver loans. In short, this gives Cumulus another two years of runway to work on its turnaround.
The answer to the Cumulus situation is very complicated but since deception is not normally a good business model in the long run, the simple answer to this complex question is……..”Stick a fork in it”
I ask the following because I just do not know:
What specific and FUNDAMENTAL improvements to Programming and ad creation has Cumulus made in the last two years to improve its lot?
That “The Dark One” might be messin’ with the share price is not an element I have factored in. 🙂