Townsquare Media has entered into an agreement to repurchase a minimum of 10 million of the 12.5 million shares of the company owned by Oaktree Capital. The price Townsquare will pay is $6.40 per share, a 19% discount from last Friday’s closing price.
“We appreciate the opportunity to facilitate this significant transaction with Oaktree and are excited about this repurchase, which secures the exit of a very long-term private equity majority shareholder that current and potential shareholders have described to me consistently as being an obstacle to investing more, or establishing a position, in Townsquare given the significant overhang Oaktree’s holding represented,” said Bill Wilson, CEO. “This repurchase is immediately accretive to shareholders and we thank our Board of Directors for their vote of confidence in our medium and long-term business plan to grow revenue and profits.”
“Oaktree remains fully supportive of the Company and its prospects,” said David Quick, Managing Director at Oaktree. “The Oaktree entities that own these shares are selling their interests in the Company because they are now beyond their fund life and are winding down.”
The closing of the repurchase is subject to the satisfaction of customary closing conditions, including short form approval by the FCC. 15 months after the closing of the repurchase, the company has the option to purchase all of the remaining securities from Oaktree, and Oaktree has the option to sell all or a portion of its remaining securities to the Company, at a purchase price per security of $6.40 in cash.
Houlihan Lokey Capital, Inc. served as financial adviser to the Special Committee in connection with the repurchase.
