Cox Media Group is the latest broadcaster moving forward with a debt extension plan. Despite being privately held, CMG still plans to swap Senior Notes due 2027 for new Second-Priority Senior Secured Notes due 2029 while maintaining the same interest rate.
The 8.875% interest rate on the new notes will remain unchanged, provided the debtholders agree to the offer. The debt swap already has strong support, as 88% of debtholders have agreed to the plan through a transaction support agreement signed on Tuesday.
CMG, which is 29% owned by Cox Enterprises, announced that lenders who wish to participate in the exchange have until 5p ET on November 13 to submit their tender.
For lenders who participate early, there is an Early Tender Premium. Those who tender their notes before the early deadline will be eligible for $1,015 in new notes for every $1,000 of old notes tendered. If notes are tendered after the Early Tender Time but before the final deadline, lenders will receive only $985 in new notes per $1,000 in old notes, referred to as “Late Consideration.”
CMG’s announcement comes days after Beasley Media Group announced the successful completion of their own debt swap. Initially announced in September, the exchange involved the company’s 8.625% Senior Secured Notes due 2026. Participating noteholders received $950 in new notes, which will mature on August 1, 2028, with an interest rate of 9.2%, for every $1,000 of old notes exchanged.
On May 2, Cumulus Media closed its debt exchange offer with 94% of its 6.750% Senior Secured First-Lien Notes due 2026 tendered for new notes. Despite missing its target participation, Cumulus waived the minimum participation requirement and proceeded with the restructuring. The changes extended debt maturities to 2029, reduced the principal by $33 million, and increased the interest rate to 8%.
These guys are playing a shell game with their debt. It’s only a matter of time before the lenders get tired of playing and want their money back.
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