Cumulus Upsizes Its Multi-Million Dollar Note Offering


On June 11RBR+TVBR was first to report that Cumulus Media planned an offering of $300 million in senior secured first-lien notes due 2026.

It turns out that demand was a lot greater than the broadcast media company envisioned.

It has upsized the offering through Cumulus Media New Holdings, an indirect wholly owned subsidiary of the audio company that holds AM and FM radio stations and the Westwood One national radio entity.

It has priced $500 million in aggregate principal amount of 6.750% senior secured first-lien notes due 2026, an increase of $200 million.

The sale of the Notes is expected to close on June 26.

Net proceeds of the offering will be used to partially repay Cumulus’ indebtedness under its senior secured term loan facility.

Cumulus’ total debt is presently $1.1 billion.

Cumulus shares as of 1:30pm Eastern were down 1.1% to $17.31.

Wall Street consensus estimates warn this is “Overvalued,” Yahoo! Business shows.

Yet, CMLS presently has a 1-year target estimate of $22, presenting a contradiction.