Cumulus Media successfully completed its financial restructuring and emerged from Chapter 11, reducing its debt by more than $1 billion.
The company plans to utilize its enhanced financial flexibility to continue its ongoing business transformation and drive value creation on behalf of all its stakeholders.
“Over the last two years, we have been relentlessly focused on our plans to turn the company around, and the completion of our financial restructuring process is a monumental step forward on our turnaround path. We emerge today as a stronger and more competitive company, with the financial foundation that we need to move forward decisively with the initiatives that will produce the greatest benefits for the company,” said Mary Berner, Cumulus Media president and CEO.
Pursuant to the restructuring, the company reduced its total debt balance from $2.34 billion to $1.30 billion, consisting entirely of a term loan bearing interest at LIBOR plus 450 basis points and due May 15, 2022.
According to a related 8-K filing, Wilmington Trust is administrative agent for the term loan.
Paul, Weiss, Rifkind, Wharton & Garrison acted as legal counsel, PJT Partners as financial advisor and Alvarez & Marsal as restructuring advisor to Cumulus Media.
Atlanta-based Cumulus Media owns and operates 441 stations broadcasting in 90 U.S. media markets and approximately 8,000 broadcast radio stations affiliated with its Westwood One network and numerous digital channels.