Successful Bond Exchange: Urban One announced the successful completion of its 7.375% Senior Secured Notes exchange offer, receiving approximately $476 million in valid tenders, indicating strong investor interest in the newly issued 7.625% Second Lien Senior Secured Notes, thereby enhancing the company's capital structure.
Oversubscription Impact: The $185 million tender offer was oversubscribed, necessitating proration, which reflects positive market sentiment towards Urban One's debt restructuring efforts and aids in improving the company's liquidity.
New Notes Issuance Plan: The company plans to issue $60.6 million in aggregate principal amount of 10.500% First Lien Senior Secured Notes, which is expected to attract further investor interest, optimizing the capital structure and reducing financing costs.
Amendment of Covenant Terms: Through a Transaction Support Agreement with Supporting Noteholders, Urban One will amend the existing notes' covenant terms to eliminate most restrictive covenants, enhancing operational flexibility and improving future financing capabilities.
UONE
$1.15+Infinity%1D
Analyst Views on UONE
About UONE
Urban One, Inc. is an urban-oriented, multi-media company. The Company’s core business is its radio broadcasting franchise, which is a radio broadcasting operation that primarily targets African-American and urban listeners. The Company operates through four segments: Radio Broadcasting, Reach Media, Digital and Cable Television. The Radio Broadcasting segment consists of all radio broadcast results of operations. The Reach Media segment consists of the results of operations for the related activities and operations of the Company’s syndicated radio shows. Digital segment includes the results of the Company’s online business, including the operations of Interactive One, as well as the digital components of the Company’s other reportable segments. The Cable Television segment includes the results of the operations of TV One and CLEO TV. The Company owns and/or operates over 72 independently formatted broadcast stations, located in 13 of the African-American markets in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
