Dial Global Announces Recapitalization Deals

Restructures Debt

DIAL GLOBAL has announced that it has negotiated a recapitalization of its existing credit facilities and other obligations and equity interests with its lenders and certain of its stockholders, expected to be effective APRIL 16th.

Included in the restructuring are a $15 million paydown of the First Lien credit agreement with GENERAL ELECTRIC CAPITAL CORP.; a new Priority Second Lien Credit Agreement with a new $31.5 million term loan maturing on JULY 21st, 2017, with the lender getting penny warrants to buy 7.5% of DIAL GLOBAL common stock; a restructuring of its $93 million in obligations under its existing Second Lien Credit Agreement to provide for a $30 million, five-year term loan and a swap of $63 million in debt for new preferred stock with corporate governance rights plus warrants for 12% of common stock in case the company does not retire the $30 million term loan and preferred stock by specified dates; and the swap of PIK Notes and Series A Preferred Stock for equity and an additional $16.5 million equity infusion.

CEO SPENCER BROWN said, “The new agreements with our lenders represent a significant step forward for the Company.  Once these transactions close, we will have delevered our balance sheet and decreased cash interest expense.  The agreements will provide us with greater flexibility to actively manage and grow our business.  We look forward to closing these transactions in APRIL and focusing on serving our clients.”

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