Urban One gives final results on 2022 note exchange, consent offer

By Taylor Fox

New York, Nov. 2 – Urban One, Inc. announced final results of its exchange offer and consent solicitation for its $350 million 7 3/8% senior secured notes due 2022 (Cusips: 75040PAS7, U74935AF1) for newly issued 8¾% senior secured notes due Dec. 15, 2022, according to a news release.

As of the 11:59 p.m. ET on Oct. 30 expiration time, requisite consents were received, and a supplemental indenture was executed to affect the proposed amendments.

Also as of the expiration, $347,016,000, or 99.15%, of the existing notes had been validly tendered and not validly withdrawn.

This is the same as the previously reported early tender results.

Eligible holders will receive the early tender consideration of $10 per $1,000, plus interest and $1,000 of new notes for $1,000 of old notes.

Any existing notes validly tendered after the early tender date, but before the 11:59 p.m. ET on Oct. 30 expiration date, would have received $5 and interest and $1,000 of new notes for each $1,000 of old notes.

Consent offer

Urban One was also soliciting consents from holders to eliminate substantially all of the restrictive covenants, certain affirmative covenants and certain events of default contained in the indenture governing the existing notes and to enter into a new intercreditor agreement under which all collateral proceeds received by the collateral agent of the existing notes will be paid to the collateral agent of the new notes to the extent of the outstanding balance of the existing notes.

The company will also enter into an amendment to certain terms of its unsecured term loan by and among the company, the lenders party thereto from time to time and Wilmington Trust, NA, as administrative agent, including the extension of the maturity date of the unsecured term loan by 90 days, which maturity is more than 90 days after the maturity date of the new notes.

The exchange offer was conditioned upon the receipt of consents from the holders of at least 90% of notes.

Details

Settlement is expected for Nov. 3.

D.F. King & Co., Inc. (866 530-8623, 212 269-5550, urban1@dfking.com) is the information agent.

Urban One is a Washington, D.C.-based urban-oriented multimedia company.

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