Regent Announces Restructuring Agreement
March 1, 2010 at 6:38 AM (PT)
REGENT COMMUNICATIONS has reached an agreement in principal with its lenders for a consensual financial restructuring that will reduce the Company's debt. The restructuring will result in the elimination of approximately $87 million of the Company's debt.
As part of the agreement, current senior debt-holders will convert their holdings into a new series of equity in the Company, while current public equity shareholders will receive approximately 12.8 cents for each share they own.
"We are pleased to move forward with the majority of our senior lenders in taking the necessary steps to substantially strengthen our capital structure," said REGENT Pres./CEO BILL STAKELIN. "Throughout the economic downturn, we have continued to implement our strategic plan to build our presence among advertisers and audiences across our local market clusters, while carefully managing our costs. Following our reorganization, we will benefit from a strong financial position and solid cash flow, giving us the flexibility to continue to invest in our operations and execute our strategy. This is a solution that preserves REGENT's unique voice in the nation's mid-sized media markets and enhances our ability to fully benefit from the rebound in the nation's advertising industry."
This is a solution that preserves Regent's unique voice in the nation's mid-sized media markets and enhances our ability to fully benefit from the rebound in the nation's advertising industry.
After giving effect to the restructuring, certain funds managed by OAKTREE CAPITAL MANAGEMENT, L.P. will own a majority of the new equity in the Company.