After its reverse stock split in January, Urban One has formally resolved its Nasdaq compliance issue and updated key terms of its lending agreement, marking a period of financial stabilization for the Black-focused broadcast company.
On February 9, Nasdaq notified Urban One that its Class D shares had traded at or above the exchange’s $1.00 minimum bid price for 10 consecutive business days, ending an almost year-long compliance saga. As of the market’s close on Wednesday, the stock was at $7.44 per share. Nasdaq has since dropped any delisting proceedings and considers the matter closed.
The issue stemmed from a February 2025 notice Urban One received after its Class D shares spent 30 straight trading sessions below the $1 threshold. To remedy the problem, the company’s board approved a 10-for-1 reverse stock split across all common stock classes, consolidating every ten shares into one. The split took effect January 22, with shares trading on an adjusted basis the following day.
On the same day Nasdaq confirmed compliance, Urban One also amended its asset-based lending facility.
The First Amendment to its credit agreement, struck in December with Bank of America serving as administrative agent, primarily clarifies when the facility matures. Under the revised terms, the ABL facility expires on the earliest of December 18, 2030; 91 days before any other significant debt comes due; or when a specific condition tied to the company’s existing notes is no longer met.
With that December deal, the company completed a debt restructuring in which nearly 98% of holders of its $476 million in senior secured notes agreed to swap them for new notes maturing in 2031, effectively pushing out the company’s major debt wall by three years. The deal also included a $185 million cash tender and shed most of the restrictive covenants attached to the original notes.
