Westwood One to pay down 15% notes with $104 million of stock proceeds

By Toni Weeks

San Diego, April 29 - Westwood One, Inc. intends to use $104 million of the proceeds from its stock purchase agreement with Clear Channel Acquisition LLC to pay down in full its 15% senior secured notes held by existing noteholders, with the exception of those held by Gores Radio Holdings, LLC, according to an 8-K filing with the Securities and Exchange Commission.

Gores, the company's controlling stockholder, holds $10.4 million of the 15% notes.

Under the agreement, Clear Channel purchased all of the outstanding capital stock of Westwood One subsidiaries Metro Networks, Inc., SmartRoute Systems, Inc. and TLAC, Inc.

Westwood One, based in New York, is an independent provider of radio programming.

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