Audacy confirmed on October 30 that its efforts to overturn the New York Stock Exchange decision regarding the delisting of its Class A Common Stock were unsuccessful. Subsequently, the NYSE has officially lodged a Form 25 with the Securities and Exchange Commission. This delisting will take effect around November 10.
Audacy’s stock had not been actively traded on the NYSE since this past May. The initial decision to commence delisting procedures came after the NYSE observed Audacy’s stock price as “abnormally low”. Since the halt, Audacy’s Class A Common Stock has persisted in over-the-counter trading, represented by the symbol “AUDA.”
This news follows an Audacy SEC filing on October 27, where the company provided updates on its ongoing lender discussions for debt maturing on March 31, 2029. A significant highlight of the filing is the elongation of the grace period for defaults in interest payment on the 2029 Notes, extending it from 30 to 60 days. This means the grace period for the previously announced interest payment of around $18 million due on September 30, will now end on November 29, if not paid off earlier.
In addition, Audacy is set to use an additional 30-day grace period for its 6.5% senior secured second-lien notes, due May 1, 2027, with an interest payment of nearly $15 million scheduled for November 1. Additionally, there’s an intent to utilize a 3-business day grace for interest payments of about $17 million due on October 31, under a credit agreement established on October 17, 2016.
Between the looming debt, the NYSE delisting, and a reverse 1-for-30 stock split having little effect on the company’s share price, Audacy’s financial woes have compounded throughout the year. It is expected that in light of the company’s situation, that Audacy will forgo a Q3 earnings call as it did for Q2, opting to simply release an earnings statement.
But their CEO is a Wharton grad. They’ve got that goin’ for them. I guess he missed the part about borrowing more than you can pay back.