Urban One has completed its debt restructuring plan, first announced in November. The Black-focused broadcaster secured near-unanimous participation from investors and extended nearly half a billion dollars in obligations by three years.
The company said 97.6% of holders of its $476 million in 7.375% Senior Secured Notes due 2028 agreed to exchange them for new 7.625% Second Lien Senior Secured Notes due 2031, plus cash. The offer also included an oversubscribed $185 million cash tender and a $60.6 million issuance of 10.5% First Lien Senior Secured Notes that carry repayment priority.
The results build on Urban One’s progress as of December 1, when 92% of bondholders submitted notes ahead of the early tender deadline. Like similar exchanges recently completed by iHeartMedia, Cumulus Media, and Beasley Media Group, the move reflects how broadcasters are refinancing under higher interest rates to buy more time and flexibility.
Once the transaction closes around December 18, Urban One will remove most of the restrictive covenants and collateral tied to its 2028 notes, reducing lender constraints and strengthening liquidity. The company’s group of supporting noteholders has backstopped the full $60.6 million issuance.
The restructuring follows a challenging third quarter, when Urban One reported revenue of $92.7 million, down 16% year-over-year, with radio revenue falling 12.6% to $34.7 million. The company cited a downturn in DEI-related advertising and a 40% drop at its Reach Media network.
Moelis & Company served as financial advisor and dealer manager for the transaction.
