Townsquare’s Tender Moment: Option Swap Offer

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Townsquare Media has filed documents with the Securities and Exchange Commission that reflect the radio and local digital media company’s desire to initiate a tender offer valued at precisely $76,472,805.50.


It involves a proposal to exchange eligible options for replacement options.

The principal 88-page document filed with the SEC on Wednesday shows Townsquare has paid a $9,521 filing fee.

The calculation of the Transaction Valuation of nearly $76.5 million assumes that all outstanding options to purchase shares of Townsquare Media
common stock that may be eligible for exchange in the offer will be exchanged pursuant to the offer.

These options cover an aggregate of 8,049,769 shares of Townsquare Media common
stock, having a weighted average exercise price of $9.50.

Specifically, the Tender Offer refers to an offer by Townsquare to eligible stock option holders to exchange certain
outstanding eligible stock options to purchase shares of Townsquare common stock for replacement options that will be
granted under Townsquare’s 2014 Omnibus Incentive Plan. An eligible option is an outstanding
stock option that was granted before January 1, 2018, under the 2014 plan.

As of July 13, options to purchase approximately 8.0 million shares of Townsquare common stock were eligible for exchange in the Offer. Of these approximately
8.0 million eligible options, approximately 46% are exercisable for shares of Townsquare’s Class A common stock and approximately 54% are exercisable for shares of
Townsquare’s Class B common stock.

The exchange offer expires on August 16 at 11:59pm Eastern.

The exchange ratio depends on the grant date and exercise price of the surrendered option, Townsquare says.

The one-time stock option exchange was approved by holders of the majority of the voting power of Townsquare on June 21, and by a special committee of Townsquare’s Board of Directors on June 15.