Cumulus Stock Buyback To Include $25 Million 'Modified Dutch Auction'

Buyback

After yesterday's announcement of a $50 million stock buyback (NET NEWS 5/4), CUMULUS MEDIA TODAY announced the first step in that process, a “modified Dutch auction” tender offer to buy back up to $25 million of  its Class A common stock for between $14.50 and $16.50 per share. The company will commence the offer on MAY 6th and end it on JUNE 3rd unless extended or changed in the interim.

Shareholders can specify at which price they want to sell and how many shares they want to sell, and the company can determine what shares it will buy back and at what price.

Pres./CEO MARY G. BERNER said, “Following yesterday’s announcement of the Board’s authorization of a $50 million share buyback program, we are launching this tender as a first step in our capital return plan. This action is underpinned by our strong financial and operating momentum, our continued belief that the Company is significantly undervalued and our desire to allow shareholders who seek it the ability to take advantage of the liquidity we can provide them. It is also our expectation that, even with this tender offer, we will be below our target of 3.5x net leverage by year end with significant continuing liquidity and financial flexibility for accretive M&A.”

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