Home Login RADIO ONLINE RSS Facebook
Advertisement

Townsquare Media Announces Significant Share Repurchase


Townsquare Media
Townsquare Media

Townsquare Media has entered into an agreement to repurchase a minimum of 10 million of the 12.5 million shares of Class A common stock, shares of Class B common stock and warrants held by funds managed by Oaktree Capital Management L.P. for $6.40 per security, which reflects a 19% discount from the closing price of the Class A common stock on Friday, January 22. The repurchase was approved by the board of directors following the recommendation of a committee of independent and disinterested directors.

With this transaction, Oaktree will be selling approximately one third of its Class A common stock, all of its Class B common stock (each share of which is entitled to ten votes per share on each matter submitted to a vote of stockholders) and at least the majority of its warrants. The purchase price is expected to be at least $64 million, subject to the company's ability to elect to purchase additional securities at closing of the repurchase.

The closing of the repurchase is subject to the satisfaction of customary closing conditions, including short form approval by the FCC. At closing, the repurchased securities will be retired and, subject to the Company's election to repurchase additional securities, the company's outstanding securities will be reduced from approximately 28 million to approximately 18 million. At closing, the composition of the company's board of directors will remain the same.

Additionally, fifteen months after the closing of the repurchase, the company has the option to purchase all of the remaining securities from Oaktree, and Oaktree has the option to sell all or a portion of its remaining securities to the company, at a purchase price per security of $6.40 in cash. Such purchase would be subject to customary closing conditions, including FCC short form approval.

"We appreciate the opportunity to facilitate this significant transaction with Oaktree and are excited about this repurchase, which secures the exit of a very long-term private equity majority shareholder that current and potential shareholders have described to me consistently as being an obstacle to investing more, or establishing a position, in Townsquare given the significant overhang Oaktree's holding represented," said CEO Bill Wilson. "This repurchase is immediately accretive to shareholders and we thank our Board of Directors for their vote of confidence in our medium and long-term business plan to grow revenue and profits."

"Oaktree remains fully supportive of the company and its prospects," said David Quick, a Townsquare Board Member since the Company's inception and Managing Director at Oaktree. "The Oaktree entities that own these shares are selling their interests in the Company because they are now beyond their fund life and are winding down." Houlihan Lokey Capital, Inc. served as financial advisor to the Special Committee in connection with the repurchase.

Advertisement

Latest Radio Stories

iHeartMedia Q1 Revs Down 9.5% to $706.6M, Loss Narrows
iHeartMedia
iHeartMedia
iHeartMedia reported first quarter revenue fell 9.5% to $706.6 million from $780.6 in 2020. Operating loss was $76 million compared to $1.7 billion in prior-year, which included $1.7 billion of impairment charges. Consolidated Adjusted EBITDA More

RTDNA Announces 2021 Regional Edward R. Murrow Awards
Regional Edward R. Murrow Awards
Regional Edward R. Murrow Awards
RTDNA has announced the regional winners of the 2021 Edward R. Murrow Awards. More than 750 awards recognize over 350 local radio and television stations in all 50 states, the District of Columbia and four countries. In addition to 50 Overall More

Entravision Communications Q1 Net Revenues Jump 132%
Entravision Communications
Entravision Communications
Entravision Communications reported first quarter net revenue climbed 132% to $148.8 million in 2020. Operating expenses were flat at $40 million. Consolidated Adjusted EBITDA was up 47% to $14.1 million from $9.6 million, while free cash flow More
Advertisement

Dave Rossi Named WKSM/Fort Walton Beach Program Director
Dave Rossi
Dave Rossi
Cumulus Media appoints veteran Rock programmer Dave Rossi as Program Director for heritage WKSM-FM (99ROCK) in Fort Walton Beach-Destin, FL. He joins the company from iHeartMedia in Nashville where he was Program Director for Classic Rock WNRQ-FM More

Saga Communications Q1 Net Revs Down 14.5% to $22.3M
Saga Communications
Saga Communications
Saga Communications reported first quarter net revenue fell 14.5% to $22.3 million from $26.1 million in 2020. Station operating expense decreased $3.3 million to $18.9 million, while station operating income dropped 14.5% to $4.7 million from $5.5 More

Daunt Receives ''Rita Houston Spirit Of NON-COMM Award''
Rita Houston
Rita Houston
Late WFUV-FM/New York Program Director Rita Houston (pictured) is being honored with a new award and a special honorarium in her name. The inaugural Rita Houston Spirit of NON-COMM Award was presented to Jennifer Daunt of Dauntless Promotions during More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement