BREAKING NEWS - Cumulus Is Officially Out of Bankruptcy

Story by Radio Ink

Cumulus Media has announced that the company has successfully completed its financial restructuring and emerged from Chapter 11, having reduced its debt by more than $1 billion.

CEO Mary Berner said, "Over the last two years, we have been relentlessly focused on our plans to turn the company around, and the completion of our financial restructuring process is a monumental step forward on our turnaround path. We emerge today as a stronger and more competitive company, with the financial foundation that we need to move forward decisively with the initiatives that will produce the greatest benefits for the company. With this financial restructuring now behind us, we are excited about what we will be able to accomplish with all of our resources and energy fully focused on our operating business.”

Pursuant to the restructuring, the company reduced its total debt balance from $2.34 billion to $1.30 billion, consisting entirely of a term loan bearing interest at LIBOR plus 450 basis points and due May 15, 2022. Also, pursuant to the terms of the financial restructuring, the company’s previously outstanding equity was cancelled and certain former stakeholders are being issued 11,052,211 shares of the Company’s Class A common stock, 5,218,209 shares of the Company’s Class B common stock and warrants to purchase 3,729,589 shares of common stock in exchange for their prior claims.

Except with regard to voting and conversion rights, shares of Class A common stock and Class B common stock are identical in all respects. Generally, the holders of shares of Class B common stock are not entitled to vote on any matters, although such shares are convertible into shares of Class A common stock, subject to FCC rules and regulations and the company’s governance documents. Cumulus has applied to have its Class A common stock listed on the NASDAQ Stock Market under the symbol CMLS and, until such time, expects that such shares will be quoted on the OTC Pink Sheets under the symbol CMIA.