Cumulus Media Partners Refinances Notes
March 10, 2009 at 5:23 AM (PT)
CMP SUSQUEHANNA RADIO HOLDINGS CORP. (CUMULUS MEDIA PARTNERS), the company formed by CUMULUS to take over the SUSQUEHANNA stations, and its CMP SUSQUEHANNA CORP. subsidiary (CMPSC), have announced an exchange offer and consent solicitation to refinance CMPSC's 9 7/8% Senior Subordinated Notes due 2014.
The notes will be exchanged for up to $15 million aggregate principal amount of new Variable Rate Senior Subordinated Secured Second Lien Notes due 2014 of CMPSC, up to Series A preferred $35 million in shares of the company, and warrants exercisable for shares of common stock representing an aggregate of up to 40% of outstanding common stock on a fully diluted basis. The aggregate principal amount of the notes outstanding as of FRIDAY (3/6) was $187.6 million; the offer expires APRIL 3rd, with notes due to be tendered by MARCH 23rd if holders want the total exchange amount including early exchange premium.
The company also disclosed that before launching the exchange offer and consent solicitation, it entered into prior agreements with holders of about 72% of the outstanding aggregate principal amount of the existing notes to accept the tender offer.