Beasley Broadcast Group Launches Exchange Offer

RADIO ONLINE | Friday, September 6, 2024

Beasley Broadcast Group

Beasley Broadcast Group has launched an exchange offer through its subsidiary, Beasley Mezzanine Holdings, aimed at restructuring its outstanding debt. The company is offering holders of its 8.625% Senior Secured Notes due 2026 the option to exchange them for newly issued 9.200% Senior Secured Notes due August, 2028 with additional equity incentives and a consent fee.

As part of the exchange, noteholders will receive 95% of the principal amount of the new notes in exchange for the existing notes, along with a pro rata share of 3.59 million Class A common stock shares and a $5.00 consent fee per $1,000 of principal amount tendered. A holder representing about 73% of the existing notes has agreed to support the transaction, contingent on full participation from noteholders.

Beasley CEO Caroline Beasley stated, "This transaction, when consummated, will provide meaningful long-term improvements to our balance sheet and provide value to debt holders and equity holders alike. It represents a significant step forward in our long-term plan to reduce leverage and position the Company for future success."

In addition to the exchange offer, the company is launching a cash tender offer to purchase up to $68 million in existing notes at 62.5% of their face value. If accepted, noteholders will receive $625 per $1,000 in principal amount, along with accrued interest. The cash offer will be funded through a combination of balance sheet cash and the issuance of $30.0 million in new 11.000% Superpriority Senior Secured Notes, due August 2028, which will be backstopped by a majority holder of the existing notes.

The exchange offer is expected to close on October 4, 2024, subject to customary conditions.