Urban One Restructures Debt with Strong Holder Participation Amid Financial Strategy Execution

Urban One Executes Strategic Financial Restructuring Amid Strong Participation

Urban One, Inc. announces early results of its strategic financial restructuring initiatives, reflecting robust interest from Eligible Holders. The company is currently conducting an Exchange Offer to swap its existing 7.375% Senior Secured Notes, due 2028, for newly issued 7.625% Second Lien Senior Secured Notes, maturing in 2031, alongside cash considerations. This maneuver aims to enhance the company’s balance sheet while extending the maturity profile of its debt. As of the Early Tender Date, Urban One reports that approximately 92.2% of the existing notes, amounting to around $450 million, have been validly tendered by holders, highlighting the demand for the new securities and the potential for improved financial stability.

In addition to the Exchange Offer, Urban One is executing a Tender Offer, seeking to purchase up to $185 million of its existing notes for a maximum cash payout of $111 million. The strong response from the market is evident, as the Tender Offer was oversubscribed, resulting in proration of accepted notes. Participants in this process include those involved in both the Exchange and Tender Offers, demonstrating a consolidated interest in Urban One's financial restructuring efforts. The company's proactive approach to managing its debt obligations not only signals confidence in its long-term strategy but also aims to solidify its position within the media and entertainment industry.

Furthermore, Urban One is also offering a Subscription Offer for newly issued 10.500% First Lien Senior Secured Notes due 2030, valued at up to $60.6 million. This multi-faceted financial strategy is designed to optimize Urban One's capital structure while providing current and potential investors with attractive opportunities. The early tender results illustrate a decisive move towards strengthening the company’s financial foundation, positioning Urban One for future growth and stability in an increasingly competitive landscape.

In other developments, the restructuring efforts reflect Urban One’s commitment to adapting to market conditions and investor preferences. The significant engagement from Eligible Holders not only validates the company's strategy but also sets the stage for a more resilient operational framework moving forward. As Urban One navigates this financial realignment, the company continues to emphasize its dedication to delivering value to its stakeholders while reinforcing its presence in the media sector.