Beasley Broadcast Group Completes Debt Restructuring Offers

RADIO ONLINE | Monday, October 7, 2024

Beasley Broadcast Group

Beasley Broadcast Group has completed its debt restructuring process, including the successful expiration and final results of several previously announced offers. These offers aim to reduce the company's debt, extend maturity dates, and strengthen its financial position.

The company conducted an exchange offer allowing holders of its 8.625% Senior Secured Notes due 2026 to exchange their notes for newly issued 9.200% Senior Secured Notes due August 2028. The exchange offer provided an exchange ratio of 95%, or $950 for every $1,000 of the principal amount of the existing notes, along with a pro rata share of 179,424 Class A Common Stock shares and a consent fee of $5.00 per $1,000 of principal amount tendered.

Additionally, Beasley completed a cash tender offer to purchase up to $68.0 million of the existing notes at 62.5% of face value and issued $30.0 million in new 11.000% Superpriority Senior Secured Notes, maturing on August 1, 2028.

Beasley Broadcast Group CEO Caroline Beasley stated, "These transactions will provide immediate debt reduction, meaningfully extend our maturities, and position our business for sustained success, creating significant value for both our shareholders and noteholders. The fact that 98.4% of our outstanding indebtedness supported these initiatives reflects our stakeholders' confidence in the company's future."

A key aspect of the restructuring was support from a significant noteholder representing approximately 73% of the outstanding notes, who agreed to backstop the new notes offer and waived the requirement for full participation by all noteholders.

The company also received the necessary consents to amend its existing indentures, with the changes becoming effective once the offers are fully settled, which is expected to occur on October 8.