secwatch / observer
8-K filed January 8, 2024, 6:59 PM ET CIK 0001067837
other material confidence high sentiment negative materiality 0.95

AUDACY, INC.: going-concern / distress — Audacy files prepackaged Chapter 11; plans to convert $1.6B debt to equity, wiping out existing equity

AUDACY, INC.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AUDACY, INC. faced acceleration on credit facility.

Instrument
credit facility
Event
acceleration
Exact text from the filing
The commencement of the Chapter 11 Cases described in Item 1.03 of this current report on Form 8-K constitutes an event of default that accelerated the Debtors’ respective obligations under the following debt instruments
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AUDACY, INC. faced acceleration on senior notes.

Instrument
senior notes
Event
acceleration
Exact text from the filing
The commencement of the Chapter 11 Cases described in Item 1.03 of this current report on Form 8-K constitutes an event of default that accelerated the Debtors’ respective obligations under the following debt instruments
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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

AUDACY, INC. entered chapter 11 in U.S. Bankruptcy Court (petition 2024-01-07).

Proceeding
chapter 11
Court
U.S. Bankruptcy Court
Petition
2024-01-07
Exact text from the filing
On January 7, 2024, the Debtors filed voluntary petitions for relief (the “ Bankruptcy Petitions ”) under Chapter 11 in the Bankruptcy Court. The Debtors are seeking Bankruptcy Court authorization to jointly administer the Chapter 11 Cases under the caption “In re: Audacy, Inc., et al.” Case No. 24-90004 (CML).
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

AUDACY, INC. entered into Restructuring Support Agreement with Consenting First Lien Lenders and Consenting Second Lien Noteholders valued at conversion of approximately $1.6 billion of funded debt into equity (effective 2024-01-04).

Action
entry
Agreement
credit facility
Counterparty
Consenting First Lien Lenders and Consenting Second Lien Noteholders
Value
conversion of approximately $1.6 billion of funded debt into equity
Effective
2024-01-04
Exact text from the filing
On January 4, 2024, the Debtors entered into a Restructuring Support Agreement (the “ Restructuring Support Agreement ”) with: • Consenting First Lien Lenders holding approximately 82.2% of the outstanding First Lien Loans under the Credit Agreement, dated as of October 17, 2016 (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “ Credit Agreement ”); and • Consenting Second Lien Noteholders holding approximately 73.6% of the outstanding principal amount of the 2027 Notes and the 2029 Notes.
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Source: SEC EDGAR
accession 0001193125-24-003834
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