Westwood One Completes Refinancing
April 23, 2009 at 11:27 AM (PT)
WESTWOOD ONE has completed the refinancing of its outstanding long-term indebtedness and the recapitalization of its equity. As part of the recapitalization, WESTWOOD ONE’s then-existing lenders refinanced and exchanged all of their outstanding indebtedness (approximately $241 million in principal) for $25 million in cash, shares of 8.0% Series B Convertible Preferred Stock, which will mature on July 15th, 2012.
Entities managed by THE GORES GROUP, LLC purchased for cash $25 million of Series B Preferred Stock, and exchanged all of their 7.5% Series A Convertible Preferred Stock for shares of 7.5% Series A-1 Convertible Preferred Stock. As a result of the recapitalization, Gores owns approximately 74.8% of WESTWOOD ONE’s equity with respect to its preferred stock and Westwood One’s existing common stockholders own approximately 2.5% of the outstanding equity of WESTWOOD ONE.
"We have reached a significant milestone in Westwood One’s turnaround plan," said WESTWOOD ONE CFO ROD SHERWOOD said. "The refinancing and infusion of additional capital provide key support for our strategic initiatives to drive revenue, improve operating efficiency and acquire new properties to further enhance WESTWOOD ONE’s traffic, news, sports, talk and entertainment leadership positions."