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Beasley Broadcast Group Announces Expiration of Exchange Offer, Tender Offer and Consent Solicitation and Acceptance of Approximately 98.4% of Outstanding Notes

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Beasley Broadcast Group (Nasdaq: BBGI) announces the expiration and final results of its previously announced offers, including an exchange offer, tender offer, new notes offer, and consent solicitation for its existing 8.625% Senior Secured Notes due 2026. The company reports that 98.4% of outstanding notes were tendered and accepted, reflecting strong stakeholder confidence.

Key outcomes include:

  • Exchange Offer: $194,705,000 (72.9%) of notes exchanged for new 9.200% Senior Secured Notes due 2028
  • Tender Offer: $68,000,000 (25.5%) of notes purchased at 62.5% of face value
  • New Notes Offer: $30,000,000 of 11.000% Superpriority Senior Secured Notes due 2028
  • 179,424 shares of Class A Common Stock issued to participating noteholders

CEO Caroline Beasley stated that these transactions will provide immediate debt reduction, extend maturities, and position the business for sustained success.

Beasley Broadcast Group (Nasdaq: BBGI) annuncia la scadenza e i risultati finali delle sue offerte precedentemente annunciate, inclusa un'offerta di scambio, un'offerta pubblica di acquisto, un'offerta di nuovi titoli e una sollecitazione di consenso per i suoi esistenti 8.625% Senior Secured Notes in scadenza nel 2026. L'azienda riporta che il 98,4% dei titoli in circolazione sono stati presentati e accettati, riflettendo una solida fiducia da parte degli azionisti.

Risultati chiave includono:

  • Offerta di Scambio: $194.705.000 (72,9%) di titoli scambiati per nuovi 9.200% Senior Secured Notes con scadenza nel 2028
  • Offerta Pubblica di Acquisto: $68.000.000 (25,5%) di titoli acquistati al 62,5% del valore nominale
  • Offerta di Nuovi Titoli: $30.000.000 di 11.000% Superpriority Senior Secured Notes con scadenza nel 2028
  • 179.424 azioni di Classe A Common Stock emesse ai possessori di titoli partecipanti

Il CEO Caroline Beasley ha dichiarato che queste transazioni garantiranno una riduzione immediata del debito, estenderanno le scadenze e posizioneranno l'azienda per un successo sostenuto.

Beasley Broadcast Group (Nasdaq: BBGI) anuncia la expiración y los resultados finales de sus ofertas previamente anunciadas, incluyendo una oferta de intercambio, una oferta pública de adquisición, una oferta de nuevos títulos y una solicitud de consentimiento para sus existentes 8.625% Senior Secured Notes con vencimiento en 2026. La compañía informa que el 98.4% de los títulos en circulación fueron presentados y aceptados, reflejando una fuerte confianza de los interesados.

Los resultados clave incluyen:

  • Oferta de Intercambio: $194,705,000 (72.9%) de títulos intercambiados por nuevos 9.200% Senior Secured Notes con vencimiento en 2028
  • Oferta Pública de Adquisición: $68,000,000 (25.5%) de títulos comprados al 62.5% de su valor nominal
  • Oferta de Nuevos Títulos: $30,000,000 de 11.000% Superpriority Senior Secured Notes con vencimiento en 2028
  • 179,424 acciones de Clase A Common Stock emitidas a los tenedores de títulos que participaron

La CEO Caroline Beasley declaró que estas transacciones proporcionarán una reducción inmediata de la deuda, extenderán los vencimientos y posicionarán a la empresa para un éxito sostenido.

Beasley 방송 그룹 (Nasdaq: BBGI)은 기존 2026년 만기 8.625% 시니어 담보 노트에 대한 교환 제안, 공개 매수, 신규 노트 제안 및 동의 요청을 포함한 이전에 발표된 제안의 만료 및 최종 결과를 발표합니다. 회사는 발행된 노트의 98.4%가 제출되어 수용되었으며, 이는 이해관계자들의 강한 신뢰를 반영한다고 보고했습니다.

주요 결과는 다음과 같습니다:

  • 교환 제안: 194,705,000달러 (72.9%)의 노트가 새로운 2028년 만기 9.200% 시니어 담보 노트로 교환됨
  • 공개 매수: 68,000,000달러 (25.5%)의 노트가 액면가의 62.5%에 구매됨
  • 신규 노트 제안: 30,000,000달러의 11.000% Superpriority 시니어 담보 노트가 2028년 만기로 발행됨
  • 참여한 노트 보유자에게 179,424 주의 클래스 A 보통주가 발행됨

CEO 캐롤라인 비즐리는 이러한 거래가 즉각적인 부채 감소를 제공하고 만기를 연장하며 비즈니스를 지속적인 성공을 위한 위치에 놓이게 할 것이라고 밝혔습니다.

Beasley Broadcast Group (Nasdaq: BBGI) annonce l'expiration et les résultats finaux de ses offres précédemment annoncées, y compris une offre d'échange, une offre de rachat, une offre de nouveaux titres et une sollicitation de consentement pour ses titres existants 8,625% Senior Secured Notes arrivant à échéance en 2026. L'entreprise indique que 98,4 % des titres en circulation ont été soumis et acceptés, reflétant une forte confiance des parties prenantes.

Les résultats clés incluent :

  • Offre d'échange : 194 705 000 $ (72,9 %) de titres échangés contre de nouveaux 9,200 % Senior Secured Notes arrivant à échéance en 2028
  • Offre de rachat : 68 000 000 $ (25,5 %) de titres achetés à 62,5 % de la valeur nominale
  • Offre de nouveaux titres : 30 000 000 $ de 11,000 % Superpriority Senior Secured Notes arrivant à échéance en 2028
  • 179 424 actions de Classe A Common Stock émises aux détenteurs de titres participants

La PDG Caroline Beasley a déclaré que ces transactions permettront une réduction immédiate de la dette, prolongeront les échéances et positionneront l'entreprise pour un succès durable.

Beasley Broadcast Group (Nasdaq: BBGI) gibt das Ablaufen und die endgültigen Ergebnisse seiner zuvor angekündigten Angebote bekannt, einschließlich eines Tauschangebots, eines Übernahmeangebots, eines Angebots neuer Anleihen und einer Zustimmungseinholung für seine bestehenden 8,625% Senior Secured Notes mit Fälligkeit im Jahr 2026. Das Unternehmen berichtet, dass 98,4% der ausstehenden Anleihen eingereicht und angenommen wurden, was das starke Vertrauen der Stakeholder widerspiegelt.

Wichtige Ergebnisse sind:

  • Tauschangebot: 194.705.000 $ (72,9%) der Anleihen wurden gegen neue 9,200% Senior Secured Notes mit Fälligkeit 2028 getauscht
  • Übernahmeangebot: 68.000.000 $ (25,5%) der Anleihen wurden zu 62,5% des Nennwerts gekauft
  • Neues Anleiheangebot: 30.000.000 $ an 11,000% Superpriority Senior Secured Notes mit Fälligkeit 2028
  • 179.424 Aktien der Klasse A Stammaktien an teilnehmende Anleihehalter ausgegeben

Die CEO Caroline Beasley erklärte, dass diese Transaktionen eine sofortige Schuldenreduzierung ermöglichen, die Fälligkeiten verlängern werden und das Unternehmen für einen nachhaltigen Erfolg positionieren werden.

Positive
  • 98.4% of outstanding notes were tendered and accepted, indicating strong stakeholder support
  • Immediate debt reduction achieved through the tender offer and exchange offer
  • Maturity extension through issuance of new notes due in 2028
  • Potential for improved financial position through debt restructuring
Negative
  • Issuance of new notes with higher interest rates (9.200% and 11.000%) compared to existing 8.625% notes
  • Dilution of existing shareholders due to issuance of 179,424 new Class A Common Stock shares

NAPLES, Fla., Oct. 07, 2024 (GLOBE NEWSWIRE) -- Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (the “Company”), a multi-platform media company, today announces the expiration and final results of its previously announced offers (the “Offers”) including (i) an exchange offer (the “Exchange Offer”) of the Company’s existing 8.625% Senior Secured Notes due 2026 (the “Existing Notes”), (ii) a cash offer to purchase up to $68.0 million of Existing Notes at a purchase price of 62.5% (the “Tender Offer”), (iii) a new notes offer (the “New Notes Offer”) of $30.0 million aggregate principal amount of 11.000% Superpriority Senior Secured Notes due August 1, 2028 (the “New Notes”), and (iv) the solicitation of consents (the “Consent Solicitation”) of the terms and conditions set forth in the Exchange Offer Memorandum (the “Exchange Offer Memorandum”).

Caroline Beasley, Chief Executive Officer of the Company, said, “We are incredibly pleased with the outcome of our Exchange Offer and Tender Offer. These transactions will provide immediate debt reduction, meaningfully extend our maturities, and position our business for sustained success, thereby creating significant value for both our shareholders and noteholders. The transactions are supported by 98.4% of our outstanding indebtedness, reflecting our stakeholders’ confidence in the Company’s future.”

In the Exchange Offer, holders of the Existing Notes (the “Existing Noteholders”), had the opportunity to exchange their holdings into: (i) newly issued 9.200% Senior Secured Notes due August 1, 2028 (the “Exchange Notes”) at an exchange ratio of 95.0% of the aggregate principal amount (or $950 per $1,000 of principal amount) of the Existing Notes tendered for exchange; (ii) a pro rata share of 179,424(1) shares of Class A Common Stock of the Company (the “Exchange Shares”), based upon pro rata ownership of the Exchange Notes, pursuant to the terms and conditions described in the Exchange Offer Memorandum and Consent Solicitation Statement, dated September 5, 2024 and (iii) a consent fee of $5.00, in each case per $1,000 principal amount of Existing Notes tendered.

Subject to the terms and conditions set forth in the Exchange Offer Memorandum, the Company has the option to increase the Exchange Shares issued and/or the cash amount paid to each exchanging holder in the Exchange Offer by an amount not to exceed, in the aggregate, a pro rata portion of $3.0 million (with the value of any additional Exchange Shares issued determined on the settlement date of October 8, 2024) if, and to the extent the Company determines, in its sole discretion, that such issuance or payment would improve the Company’s financial position after giving effect to the Exchange Offer, including the payment of fees and potential taxes associated therewith. The Company expects to make a final determination regarding an increase in the amount of Exchange Shares to be issued and/or cash to be paid to each exchanging holder shortly prior to settlement of the Exchange Offer on October 8, 2024.

A holder (the “Supporting Holder”) of approximately 73% of the Existing Notes agreed to fully backstop the New Notes Offer and previously entered into a transaction support agreement to support the Exchange Offer, subject to certain customary conditions, including a minimum participation condition (the “TSA Minimum Participation Condition“) requiring 100% of Existing Noteholders to participate in the Exchange Offer or Tender Offer. The Supporting Holder waived the TSA Minimum Participation Condition on October 7, 2024.

The following table describes the final results as of the expiration of the Exchange Offer and the Tender Offer at 5:00 p.m., New York City time, on October 4, 2024 in more detail:

TitleAggregate Principal Amount
Tendered and Accepted

Percentage of Outstanding
Notes Validly Tendered
Aggregate Principal Amount
of Exchange Notes Issued
Number of Shares of
Exchange Shares Issued
Tender Offer$68,000,00025.5%N/AN/A
Exchange Offer$194,705,00072.9%$184,969,750179,424(1)
Total$262,705,00098.4%$184,969,750179,424(1)


The Company further announces the expiration and completion of its Consent Solicitation of the terms and conditions set forth in the Exchange Offer Memorandum from Existing Noteholders of the Existing Notes. The Company received the requisite consents from Existing Noteholders to adopt the proposed amendments to the existing indentures, and it previously entered into supplemental indentures with the trustee to reflect the proposed amendments, but the proposed amendments will become operative only upon the consummation of the Offers. For additional details on the Offers and the Consent Solicitation, including the anticipated consideration to be received by holders upon settlement of the Offers, please refer to the Company’s press release issued on September 6, 2024.

This press release is neither an offer to purchase nor a solicitation of an offer to buy any notes in the Offers.

The New Notes, the Exchange Notes and the Exchange Shares have not been and will not be registered under the federal securities laws or the securities laws of any state or any other jurisdiction. We are not required to register the Exchange Notes, the New Notes and the Exchange Shares for resale under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction and are not required to exchange the Existing Notes for notes registered under the Securities Act or the securities laws of any other jurisdiction, and we have no present intention to do so. The offering was made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act, only to persons who are (i) reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) or (ii) not “U.S. persons” (as defined in Rule 902 under the Securities Act) and are in compliance with Regulation S under the Securities Act.

Latham & Watkins LLP served as legal counsel to the Company, and Moelis & Company LLC served as exclusive financial advisor to the Company, and dealer manager and solicitation agent. Gibson, Dunn & Crutcher LLP served as legal advisor to the Supporting Holder.

About Beasley Broadcast Group

The Company is a multi-platform media company whose primary business is operating radio stations throughout the United States. The Company offers local and national advertisers integrated marketing solutions across audio, digital and event platforms. The Company owns and operate stations in the following markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, and Tampa-Saint Petersburg, FL. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, X, text, apps and email.

Contact

Joseph Jaffoni, Jennifer Neuman JCIR
(212) 835-8500
bbgi@jcir.com

Heidi Raphael, BBGI
(239) 263-5000

Note Regarding Forward-Looking Statements

This release contains “forward-looking statements” about the Company, which relate to future, not past, events. All statements other than statements of historical fact included in this release are forward-looking statements. These forward-looking statements are based on the current beliefs and expectations of the Company’s management and are subject to known and unknown risks and uncertainties. Forward-looking statements, which address the Company’s expected business and financial performance and financial condition, among other matters, contain words such as: “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “may,” “will,” “plans,” “projects,” “could,” “should,” “would,” “seek,” “forecast,” or other similar expressions.

Forward-looking statements, by their nature, address matters that are, to different degrees, uncertain. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, and actual results or events may differ materially from those projected or implied in those statements. Factors that could cause actual results or events to differ materially from these forward-looking statements include, but are not limited to:

  • the Company’s ability to comply with the continued listing standards of the Nasdaq Capital Market;
  • risks from social and natural catastrophic events;
  • external economic forces and conditions that could have a material adverse impact on the Company’s advertising revenues and results of operations;
  • the ability of the Company’s stations to compete effectively in their respective markets for advertising revenues;
  • the ability of the Company to develop compelling and differentiated digital content, products and services;
  • audience acceptance of the Company’s content, particularly its audio programs;
  • the ability of the Company to respond to changes in technology, standards and services that affect the audio industry;
  • the Company’s dependence on federally issued licenses subject to extensive federal regulation;
  • actions by the FCC or new legislation affecting the audio industry;
  • increases to royalties the Company pays to copyright owners or the adoption of legislation requiring royalties to be paid to record labels and recording artists;
  • the Company’s dependence on selected market clusters of stations for a material portion of its net revenue;
  • credit risk on the Company’s accounts receivable;
  • the risk that the Company’s FCC licenses and/or goodwill could become impaired;
  • the Company’s substantial debt levels and the potential effect of restrictive debt covenants on the Company’s operational flexibility and ability to pay dividends;
  • risks related to the Exchange Notes and the New Notes;
  • the Company’s ability to comply with debt covenants and service its debt;
  • impacts to the value of collateral assets;
  • the Company’s ability to consummate the Offers;
  • the potential effects of hurricanes on the Company’s corporate offices and stations;
  • the failure or destruction of the internet, satellite systems and transmitter facilities that the Company depends upon to distribute its programming;
  • disruptions or security breaches of the Company’s information technology infrastructure and information systems;
  • the loss of key personnel;
  • the Company’s ability to integrate acquired businesses and achieve fully the strategic and financial objectives related thereto and their impact on the Company’s financial condition and results of operations;
  • the fact that the Company is controlled by the Beasley family, which creates difficulties for any attempt to gain control of the Company; and
  • other economic, business, competitive, and regulatory factors affecting the businesses of the Company, as discussed in more detail in the Company’s filings with the SEC.

Although the Company believes the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company does not intend, and undertake no obligation, to update any forward-looking statement.


(1) On September 13, 2024, the Company’s Board of Directors approved a reverse stock split of its Class A and Class B Common Stock at a ratio of 1-for-20, allowing for the Company to remain in compliance with Nasdaq Capital Market’s $1.00 bid minimum bid price requirement. The reverse stock split became effective on September 23, 2024. Shares of the Company’s Class A Common Stock began trading on a split-adjusted basis on Nasdaq on September 24, 2024. For more information on the reverse stock split, please refer to the Company’s definitive information statement filed with the U.S. Securities and Exchange Commission on September 3, 2024, or the Company’s Current Report on Form 8-K filed on September 19, 2024.


FAQ

What percentage of Beasley Broadcast Group's (BBGI) outstanding notes were tendered and accepted in the recent offers?

98.4% of Beasley Broadcast Group's (BBGI) outstanding notes were tendered and accepted in the recent exchange offer, tender offer, and consent solicitation.

How much debt reduction did Beasley Broadcast Group (BBGI) achieve through its tender offer?

Beasley Broadcast Group (BBGI) achieved $68,000,000 in debt reduction through its tender offer, purchasing 25.5% of outstanding notes at 62.5% of face value.

What is the interest rate and maturity of the new notes issued by Beasley Broadcast Group (BBGI) in the exchange offer?

Beasley Broadcast Group (BBGI) issued new 9.200% Senior Secured Notes due August 1, 2028 in the exchange offer.

How many shares of Class A Common Stock did Beasley Broadcast Group (BBGI) issue as part of the exchange offer?

Beasley Broadcast Group (BBGI) issued 179,424 shares of Class A Common Stock to participating noteholders as part of the exchange offer.

Beasley Broadcasting Group Inc

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Broadcasting
Radio Broadcasting Stations
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United States of America
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