Audacy sounds alarm regarding going concern status

Chicago, May 17 – Audacy, Inc. (formerly Entercom Communications Corp.) cast doubt in its most recent 10-Q filing about the company’s ability to continue as a going concern in the upcoming 12 months, citing macroeconomic conditions including rising interest rates, market volatility and dwindling advertising revenue.

The company expects problems with financial covenants under its debt agreements in the next three months.

This could cause the debt to be accelerated.

The company currently lists $1,881,363,000 of long-term debt as of March 31.

Debt on the list includes a $180 million revolver and $632.42 million outstanding on a term B-2 loan due Nov. 17, 2024.

The company also has $460 million of 6½% notes due May 1, 2027 and $540 million of 6¾% notes due March 31, 2029.

There is also a $75 million accounts receivable facility.

The company had total liquidity of $123.7 million on March 31, comprised of $39.9 million under the revolver and $83.3 million in cash or cash equivalents.

The company’s consolidated net first-lien leverage ratio was 3.8x as calculated in accordance with the terms of the credit facility.

Audacy is a Philadelphia-based broadcasting company.

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