
Audacy has pulled the plug on its plan to protect shareholders from ownership dilution and raise more capital for the freshly private company after stockholder feedback made it clear that the necessary approvals would not be obtained.
The offering was initially introduced in December as part of Audacy’s post-bankruptcy strategy to further reduce debt and solidify its financial footing. In September, the company completed a significant financial restructuring, reducing funded debt by 80%, from $1.9 billion to $350 million, and achieving a total net leverage of 2.7x. As part of that restructuring, Audacy transitioned to a private company.
The terminated “preemptive rights offering” was designed to protect stockholders holding at least 0.5% of total shares or qualifying securities from ownership dilution by allowing them to purchase additional shares to maintain their stakes. Qualifying stockholders would have been allowed to purchase up to 5,000,000 additional shares of the company’s Class A and Class B Common Stock at $20.00 per share.
Audacy has stated that stockholders with questions about the terminated offering can reach out to Latham & Watkins LLP.
The announcement comes as Audacy faces potential regulatory scrutiny. Incoming FCC Chairman Brendan Carr has expressed concerns over the Commission’s prior decision to grant a waiver tied to Audacy’s exit from bankruptcy. Carr has been critical of the temporary waiver approved in a 3-2 vote, citing potential favoritism and raising concerns about the role of George Soros-backed Laurel Tree Opportunities Corporation, which now holds over 40% of Audacy’s senior debt.
In a recent FOX Business appearance, Carr committed to revisiting the matter, stating, “There’s a petition for reconsideration pending at the FCC right now, and I want to take a very hard look at that.”
The Fat Lady is starting to sing! Loudly