Audacy receives bankruptcy court approval of first-day motions

By Sarah Lizee

Olympia, Wash., Jan. 9 – Audacy, Inc. has received approval from the U.S. Bankruptcy Court for the Southern District of Texas of its first-day motions, according to a Tuesday morning press release.

As a reminder, the company made a pre-packaged Chapter 11 bankruptcy filing on Sunday.

The company said it has entered into a restructuring support agreement with beneficial holders of about 82.2% of its first-lien senior secured loans and about 73.6% of its second-lien secured notes on the terms of a plan to significantly deleverage its balance sheet and further position the company for long-term growth.

The restructuring will equitize about $1.6 billion of funded debt, resulting in an 80% reduction of debt to about $350 million from roughly $1.9 billion.

As part of the first-day motions, the court today granted Audacy access to $57 million in financing from some of its existing first-lien lenders. The financing is comprised of a new $32 million debtor-in-possession term loan and a $25 million upsize of the company’s existing $75 million accounts receivables financing facility to $100 million.

Wilmington Savings Fund Society, FSB is the agent for the DIP facility.

The facility is set to mature in 60 days and bear interest at SOFR plus 600 basis points per annum.

There is a 2% commitment fee, a 3% backstop fee and a 15% prepayment premium.

The DIP financing, the upsize of the accounts receivables financing facility and the company's cash from operations and available reserves will enable Audacy to fulfill commitments to employees, advertisers, partners and vendors, the company said.

The court also authorized Audacy to continue to pay employee wages, salaries and benefits without interruption and to pay vendors and suppliers.

Audacy is a Philadelphia-based broadcasting company. The Chapter 11 case number is 24-90004.

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