Cumulus Media has announced a “modified Dutch auction” tender offer to purchase up to $25 Million of shares of its Class A common stock. The offer is at a price not greater than $16.50 and not less than $14.50 per share of Class A common stock, to the tendering shareholder in cash.
“Following the announcement of the Board’s authorization of a $50 million share buyback program, we are launching this tender as a first step in our capital return plan,” said Mary Berner, President/CEO. “This action is underpinned by our strong financial and operating momentum, our continued belief that the Company is significantly undervalued and our desire to allow shareholders who seek it the ability to take advantage of the liquidity we can provide them. It is also our expectation that, even with this tender offer, we will be below our target of 3.5x net leverage by year end with significant continuing liquidity and financial flexibility for accretive M&A.”
A “modified Dutch auction,” is a procedure that allows shareholders to select the price, within a price range specified by Cumulus, and the number of shares they are willing to sell at that price (or should a higher price be determined as the “purchase price,” such higher price). The Offer is being made under Cumulus’s previously announced $50 million share repurchase program.
The Company plans to commence the Offer on May 6, 2022, with an expiration at the end of the day on June 3, 2022, unless extended or earlier terminated by Cumulus.
Full Details Can Be Found Here.
