Freaky Friday: Townsquare Shares Slump in Active Trading


It’s a lightly traded stock, and the company’s fiscal health is arguably strong compared to some of its peers. Yet, Friday was a challenging day on Wall Street for the executive team at Townsquare Media.

On nearly five times the average volume, TSQ immediately fell from the Opening Bell and in the final minutes of trading dipped even further.

Townsquare shares were off by 11%, with a $6.60 price seen just six minutes before the Closing Bell on the NYSE rang.

When all was said and done, TSQ completed Friday’s trading with a 10.9% dip, to $6.62.

Volume was 47,881 shares on an average of 15,995 shares.

What prompted the downward activity for the local media company?

It’s not clear. But, it does come one trading session after Townsquare priced an offering of $550.0 million in aggregate principal amount of its 6.875% senior secured notes due 2026.

The notes will bear interest semi-annually at a rate equal to 6.875% per annum and were offered at par value. They are senior secured obligations of Townsquare Media and will be guaranteed on a senior secured basis by the company’s direct and wholly owned subsidiaries.

Closing of the offering is anticipated to take place on or about January 6, 2021, subject to customary closing conditions.

Townsquare intends to use the net proceeds from the offering, together with cash on hand, to repay its existing senior secured credit facilities, to redeem all of Townsquare’s outstanding 6.500% senior notes due 2023, and to pay the premium, fees and expenses related to the offering.

Townsquare also intends to terminate its existing senior secured credit facilities, including its existing revolving credit facility.