Audacy Completes Financial Restructuring, Reduces Debt

RADIO ONLINE | Monday, September 30, 2024

Audacy

Audacy Inc. announced Monday the successful completion of its financial restructuring, reducing its funded debt by approximately $1.6 billion. The restructuring has lowered the company's debt from around $1.9 billion to $350 million, an 80% reduction, leaving Audacy with total net leverage of about 2.7 times. The company highlighted its strong position in delivering premium content as it moves forward.

Audacy President and CEO David J. Field will continue to lead the company and serve on its new Board of Directors. In a statement, Field expressed his satisfaction with the restructuring process and the company's future prospects. "We are pleased to have successfully achieved all of our restructuring goals, emerging with an outstanding balance sheet... Today, Audacy embarks on our next chapter, capitalizing on our position as a scaled, multi-platform audio leader," said Field.

Audacy has continued to focus on growth through investments in talent, content, ad technology, and its audio streaming platform. Despite challenges in the traditional advertising market, the company saw significant financial growth in the first half of 2024, delivering Adjusted EBITDA growth of 128%. The company has maintained its industry leadership in sports audio, podcasts, and digital content, with over 200 million monthly listeners across its platforms.

Audacy has a presence in 45 of the largest U.S. markets, with a portfolio of over 220 local radio brands and air talent. Its podcast network features partnerships with major names like HBO, Netflix, and the WNBA, and its sports audio leadership includes 40 local sports stations, 600 plus sports podcasts and partnerships with professional sports leagues.

As part of the restructuring, Audacy is expected to transition to a private company. The process involved several advisory firms, including PJT Partners, Latham & Watkins LLP and FTI Consulting on behalf of Audacy, and Greenhill & Co. LLC, Gibson, Dunn & Crutcher LLP and others representing the company's lenders.