Following a slight extension, Beasley Media Group has closed its debt exchange and tender offer following its successful completion. The offers resulted in 98.4% participation, with $184.9 million in new exchange notes and 179,424 shares of Class A Stock issued.
First announced in early September, these offers included an exchange of the company’s 8.625% Senior Secured Notes due 2026. For every $1,000 of old notes they exchanged, noteholders who participated received $950 in new notes, which will mature on August 1, 2028, and come with an interest rate of 9.2%.
In addition, participants received a portion of 179,424 shares of the company’s stock based on how much they exchanged, plus a $5 consent fee for each $1,000 worth of old notes they exchanged. he company also received the necessary consents to amend the existing indentures, ensuring the proposed changes will become effective once the offers are finalized.
The Settlement Date was previously set to Tuesday, October 8.
CEO Caroline Beasley said, “We are incredibly pleased with the outcome of our Exchange Offer and Tender Offer. These transactions will provide immediate debt reduction, meaningfully extend our maturities, and position our business for sustained success, thereby creating significant value for both our shareholders and noteholders. The transactions are supported by 98.4% of our outstanding indebtedness, reflecting our stakeholders’ confidence in the Company’s future.”
Looks like Beasley got a fantastic deal on this. Wiped out about $40m in net debt, and only had to give up a little bit of equity. Should reduce their interest expense by about $5m from 2023 levels. They were basically break even last quarter on a GAAP basis. I’ve bought some of their stock