Townsquare Media files IPO


Townsquare Media GroupTownsquare Media filed an initial public offering to take the company public on 6/24. Townsquare will trade its common stock on the New York Stock Exchange under the symbol “TSQ.”

Four years after Townsquare was formed with a buyout of Regent Communications, radio’s third-largest station group is taking steps to again become a public company. It filed a registration statement on Form S-1 with the SEC. The number of shares to be offered and the price range for the offering have not yet been determined.

BofA Merrill Lynch, Jefferies, RBC Capital Markets, Guggenheim Securities and Macquarie Capital will serve as joint book-running managers of the offering. The offering will be made only by means of a prospectus.

A registration statement relating to these securities has been filed with the SEC  but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective.

Oaktree Capital will still hold a majority of the voting power in the company, but the IPO will allow the private equity firm to recoup some of the millions of dollars it spent building the small- and medium-market focused company that includes 325 stations in 66 markets.

In pro forma 2013, Townsquare scored $345.1 million of net revenue; $17.3 million of net income, and $94.9 million of Adjusted EBITDA. Pro-forma net revenue in 2013 grew 2.2% YOY and, excluding the effect of political advertising revenue, grew 4.7% YOY. In Q1, Townsquare’s revenues were $79.2 million, compared to $53.5 million in Q1 of 2013.

The IPO didn’t launch as successfully as planned, however. There were no buyers until the dropped to $10.74. While it briefly hit $10.84, the trading never reached the $11  price and in towards the 7/24 closing bell, it sank to $9.93.