Just days after revealing that it was in negotiations with its lenders, Westwood One announced Wednesday after the stock market closed that a deal had been reached. The agreement removes the possibility of a technical default on the company’s debt.
According to the announcement from WW1, “The Company has reached an agreement in principle with its lenders to amend its debt covenants to provide the Company with additional financial flexibility going forward.”
The agreement still requires execution of definitive documentation with the lenders, after which the terms will be filed with the SEC.
“This is a positive development for the Company and demonstrates our lenders willingness to work with us as we continue to grow our radio and digital businesses in 2011 and beyond,” said WW1 President Rod Sherwood.