Report: Audacy Agrees to Sell Assets in Boston, Phoenix

RADIO ONLINE | Thursday, August 10, 2023 | 0:05am CT

Audacy

Audacy has reportedly entered into agreements to divest assets in both Boston and Phoenix, indicating a strategic move amidst ongoing negotiations with its creditors. These negotiations are part of a broader effort to restructure a substantial $1.9 billion debt, aimed at securing much-needed financial flexibility. If these discussions fail to yield the desired outcomes, Audacy has raised the possibility of seeking bankruptcy protection as a potential course of action.

Audacy's assets in Boston include Sports/Talk WEEI (93.7, 850), AC WMJX-FM (Magic 106.7), Hot AC WWBX-FM (Mix 104.1) and Adult Hits WBGB-FM (Big 103.3). Meanwhile, in Phoenix, Audacy owns CHR KALV-FM (Live 101.5), Country KMLE-FM (107.9) and Classic Hits KOOL-FM (94.5).

The specific assets slated for sale have not been disclosed in detail, but they encompassed properties such as land and improvements, buildings, equipment and radio broadcasting licenses. These transactions are expected to amount to just under $2.5 million and are anticipated to be finalized within the coming year.

In a filing with the SEC on Monday, Audacy (OTC: AUDA) attributed its dwindling advertising revenue to larger macroeconomic factors such as inflation. The company acknowledged that many of these variables are beyond its control, largely contingent on lenders' decisions in any prospective restructuring scenarios. However, Audacy offered a glimpse into its potential alternative direction if an agreement cannot be reached.

The company stated, "Should we be unable or opt not to finalize such transactions, we may consider initiating a process to reorganize our debt under the protection of a bankruptcy court," as outlined in the SEC submission.

As Audacy navigates discussions with its creditors, the assessed value of the assets collateralizing its debt has experienced a decline. An evaluation of its radio licenses revealed a noteworthy impairment loss totaling $124.8 million, a consequence attributed to market softness in the advertising sector.

Audacy has already executed divestitures as part of its cost-saving endeavors, including the sale of radio towers. Notably, the company offloaded a pair of stations to Educational Media Foundation earlier in the year, garnering $15.5 million from the transaction.