Audacy’s continued struggles and extended grace periods on interest payments have led to a major financial shift, according to the company’s recent SEC filings. The United States’ largest bank has resigned its duties to cover the broadcaster’s defaulted loans, should Audacy be unable to meet its looming deadlines.
JPMorgan Chase has stepped down from its role as Audacy’s Letter of Credit and Swing Line Lender. If Audacy fails to make its payments, JPMorgan Chase would have been the bank on the line to creditors to cover the amount shorted. The decision was born out of Audacy’s initial missed $17 million interest payment, due on October 31, and a subsequent $785,592 payment due on November 8. Although a 30-day grace period was extended by ten days, Audacy’s financial struggles persist as they negotiate the potential for restructuring.
Additionally, Audacy has made amendments to its 6.75% senior secured second-lien notes due 2029 and its 6.5% senior secured second-lien notes due May 1, 2027, extending the grace periods for interest payment defaults.
Despite these measures, Audacy faces a pressing need for nearly $51 million in cash to cover various interest payments, with deadlines only days away. As of September 30, Audacy reported having $57.38 million in cash, cash equivalents, and restricted cash.
After JPMorgan Chase’s resignation, Wilmington Savings Fund Society is now Audacy’s new Administrative Agent and Collateral Agent.
