MediaCo Completes Full Repayment of $7.3 Million Convertible Promissory Note

Rhea-AI Summary

MediaCo Holding Inc. (Nasdaq: MDIA) has fully repaid a $7.3 million convertible promissory note held by Emmis Communications in cash. Following this repayment, Emmis representatives have resigned from MediaCo's Board of Directors. The company, formed through the merger of WBLS, Hot97, and Estrella Media network, operates multiple broadcasting assets including FM radio stations and TV stations across major U.S. markets. MediaCo's portfolio includes the Estrella Television Network with over 20,000 hours of original content and 24/7 Spanish-language news, as well as iconic radio stations like WBLS and Hot97.

Positive

• Full repayment of $7.3M convertible note strengthens balance sheet
• Elimination of near-term debt maturity improves financial flexibility
• Extensive media asset portfolio across multiple major U.S. markets
• Diverse content library with over 20,000 hours of original programming

Negative

• None.

Insights

Financial Analyst

The full repayment of the $7.3 million convertible promissory note marks a significant milestone in MediaCo's financial restructuring efforts. This strategic move eliminates near-term debt obligations and strengthens the company's balance sheet. The removal of Emmis Communications' board representatives signals a clear break from the previous financial relationship and gives MediaCo more operational independence.

With a diverse portfolio of media assets across multiple major markets and formats, including FM radio stations, TV stations and the Estrella Television Network, MediaCo has substantial revenue-generating potential. The debt repayment improves the company's financial flexibility and could enhance its ability to invest in content development and market expansion. However, investors should monitor the company's ability to generate sustainable cash flows from its multicultural media assets in an increasingly competitive digital landscape.

NEW YORK--(BUSINESS WIRE)-- MediaCo Holding Inc. (Nasdaq: MDIA) (“MediaCo”), a leading multicultural media company, announced today that it has fully repaid in cash the $7.3 million convertible promissory note (the “Convertible Note”) held by Emmis Communications Corporation. In connection with the satisfaction of the Note, the representatives of Emmis on MediaCo’s Board of Directors have resigned from the Board, effective immediately.

This repayment reflects MediaCo’s focus on strengthening its balance sheet. “We are pleased to take this step forward,” said Albert Rodriguez, interim Chief Executive Officer and President of MediaCo. “This eliminates our only near-term maturity and positions us to continue our expanding mission to reach diverse audiences and drive growth for the future.”

MediaCo was formed through the recent merger between two iconic New York radio stations, WBLS and Hot97 and the Estrella Media network. The combination enjoys ownership/management over significant broadcasting assets including:

Two FM radio stations and a low power TV station in New York; a full power TV station and a cluster of four FM radio stations in Los Angeles; a low power TV station in Chicago; a cluster of three FM radio stations in Dallas; a full power TV station in Houston and cluster of three FM stations in Houston; a full power TV station in Denver; and a full power TV station in Miami.

MediaCo also enjoys significant content assets, namely the Estrella Television Network with titles such as Tengo Talento Mucho Talento and Rica Famosa Latina with over 20,000 hours of original library and 24/7 Spanish-language news with distribution on broadcast, pay television and multiple FAST channels. In radio, the Company owns iconic R&B station WBLS and the ‘Home of Hip-Hop” Hot97 and in Spanish language, Que Buena led by talent such as Funkmaster Flex and Don Cheto, respectively. The company also owns multiple studio assets, has a long heritage of successfully hosting music festivals and concerts, and operates its own network sales office.

Our website is https://mediacoholding.com/

Forward-Looking Statements

These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this communication. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241126860163/en/

For press inquiries: press@mediacoholding.com

Source: MediaCo Holding Inc.

FAQ

How much debt did MediaCo (MDIA) repay to Emmis Communications?

MediaCo (MDIA) fully repaid a $7.3 million convertible promissory note to Emmis Communications in cash.

What happened to Emmis representatives on MediaCo's (MDIA) board after the debt repayment?

Following the debt repayment, the Emmis representatives resigned from MediaCo's Board of Directors, effective immediately.

What major media assets does MediaCo (MDIA) own?

MediaCo owns multiple FM radio stations and TV stations across major U.S. markets, including WBLS and Hot97 in New York, and the Estrella Television Network with over 20,000 hours of original content.