ATLANTA, June 25, 2021 (GLOBE NEWSWIRE) – Cumulus Media Inc. (NASDAQ: CMLS) today announced that it has completed its previously announced actions to repay $ 175 million in debt using available cash, as described more in detail below.
Francisco J. Lopez-Balboa, Executive Vice President and Chief Financial Officer of CUMULUS MEDIA, said: “As improving economic and public health conditions continue to drive business trends, we have found it appropriate to accelerate several repayments. debt to accelerate our balance sheet deleveraging, reduce interest expense and increase our free cash flow generation. We believe that this better leverage and free cash flow profile, over $ 200 million in free cash(1) and a solid rebound path significantly improve our financial flexibility. Given our strong competitive position, our proven execution track record and our many revenue growth drivers, we are confident in our multiple avenues to increase shareholder value. “
Debt reduction details:
On May 17, 2021, the Company made a repayment of $ 60 million of its ABL revolver maturing in 2025, which represented the entire amount outstanding under the facility. After repayment, the ABL Revolver due 2025 is unused and available as liquidity for general business purposes.
On May 25, 2021, the Company repaid approximately $ 89 million of its term credit facility maturing in 2026 (the “Term Loan”) related to a mandatory prepayment obligation arising from the previously announced sale of land. by the Society in Bethesda, Md., in June. 2020 and sale of the towers and related assets (the “Tower Sale”) in September 2020.
Pursuant to the terms of its 6.75% senior secured senior notes due 2026 (the “Notes”), on May 26, 2021, the Company launched a takeover bid (the “ ‘purchase’) aimed at repurchasing approximately $ 26 million of the tickets to par, which represents the prorated amount to be offered from the proceeds from the sale of the tower. Upon the expiration of the Tender Offer, approximately $ 3 million in Bonds were validly deposited, accepted for payment and subsequently canceled. Taking into account the impact of the Tender Offer, a principal amount of approximately $ 450 million of Bonds remains outstanding.
On June 24, 2021, the Company submitted a notice of irrevocable repayment to the Administrative Agent of the Term Loan to effect a required repayment of $ 23 million, which represents the balance of the initial amount of the Tender Offer which is not has not been validly deposited before the expiration date. The holders of the term loan will receive their share in proportion to this repayment on or around June 28, 2021.
This press release does not constitute a notice of repurchase under the optional repurchase provisions of the Note Indenture, nor an offer to sell or the solicitation of an offer to buy any security. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale would be illegal.
Represents $ 294 million in unallocated cash as at March 31, 2021, less $ 175 million used to repay debt as described herein, plus $ 83 million in availability for the ABL revolver due 2025.
About CUMULUS MEDIA
CUMULUS MEDIA (NASDAQ: CMLS) is a leading audio media and entertainment company, delivering premium content to more than a quarter of a billion people every month, where and when they want it. CUMULUS MEDIA engages listeners with high quality local programming through 415 stations owned and operated in 86 markets; offers nationwide sports, news, talk and entertainment programs from iconic brands such as the NFL, NCAA, Masters, CNN, AP, Academy of Country Music Awards and numerous other world-class partners through nearly 7,300 affiliate stations through Westwood One, America’s largest audio network; and inspires listeners with its rapidly growing network of smart, entertaining and engaging original podcasts. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reach through digital, mobile, social and voice-activated broadcast and on-demand platforms, as well as integrated digital marketing services, powerful influencers, solutions Full-service audio, cutting-edge research and ideas, and live event experiences. CUMULUS MEDIA is the only audio media company to offer marketers guarantees of local and national advertising performance. For more information visit www.cumulusmedia.com.
Disclosure Regarding Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our current intent, beliefs or expectations primarily with respect to our future operational, financial and strategic performance. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those contained or implied in forward-looking statements due to various factors, including, but not limited to, the risks and uncertainties associated with the implementation of our strategic operational plans, the nature evolution and uncertainty of the COVID -19 pandemic and its impact on the Company, the media industry and the economy in general and other risk factors described from time to time in our filings with the Securities and Exchange Commission . Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or absence of such events or problems could materially change our actual results of operations or our financial condition. CUMULUS MEDIA assumes no responsibility to update any forward-looking statements, which are based on expectations as of the date hereof, as a result of new information, future events or otherwise.
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