As first reported last week by RBR/TVBR, Westwood One has been in negotiations with its lenders and has now (Tuesday) announced an agreement in principle to refinance its capital structure. The lenders have agreed to refinance WW1’s $241 million in outstanding debt in exchange for $25 million in cash, a 25% equity stake and $117.5 million in new senior secured notes. In addition, WW1’s largest shareholder, The Gores Group, will pay $25 million cash for new preferred stock and guarantee or otherwise provide credit support for a $20 million subordinated term loan and a $15 million unsecured revolving credit line. WW1 President and CFO Rod Sherwood calls the refinancing "an essential part of our turnaround plan."
