Audacy Concludes Financial Restructuring, Plans to Go Private
Philadelphia-based radio network Audacy has successfully completed its financial restructuring, significantly reducing its funded debt by 80%, from approximately $1.9 billion to $350 million. The company announced this on Monday, marking a major milestone in its efforts to regain financial stability.
Audacy, which operates one of the largest radio networks in the United States, credited its recovery to growth in revenue shares, increased digital revenue, audience expansion, and a reduction in operational expenses. The company will continue to be led by its president and CEO, David Field, alongside the current management team.
“Today, Audacy embarks on our next chapter, capitalizing on our position as a scaled, multi-platform audio leader,” Field said in a statement. He emphasized the company’s focus on exclusive premium audio content, innovation, and digital transformation, underpinned by its now strengthened financial position.
Additionally, Audacy shared its intention to transition into a private company following the completion of its restructuring. This decision comes after the Federal Communications Commission (FCC) approved the assignment of Audacy’s licenses to its post-bankruptcy entity on September 18. This move allowed Audacy to temporarily bypass certain regulatory reviews, facilitating a smoother restructuring process.
Audacy’s financial troubles became public earlier this year when it disclosed plans to enter a restructuring agreement to reduce its significant debt load. Among its creditors, Soros Fund Management emerged as a major player, reportedly purchasing over $400 million of Audacy’s debt, making it the largest stakeholder in the restructured company.
As part of the restructuring, Audacy approached the FCC in March to request a review of its foreign ownership levels, citing concerns that about 22% of the new, post-bankruptcy Audacy might be foreign-owned. Under U.S. broadcast ownership rules, the FCC has a 25% threshold for foreign ownership in radio and TV stations, requiring approval for any acquisitions that exceed this limit.
Despite public speculation about billionaire George Soros’s involvement, the FCC clarified that the restructuring process followed standard procedures, similar to those applied to other major radio companies like Cumulus Media and iHeartMedia. Soros Fund Management, which was founded by the investor in 1970, is a private investment firm, and while it holds a significant stake in Audacy, Soros himself is not directly purchasing the radio stations.
The restructuring is seen as a critical step in ensuring Audacy’s long-term financial viability, with the company now positioned to focus on further digital and audio innovation as it moves forward in a competitive media landscape.