Cumulus Media recently reported a 12% decrease in fourth-quarter revenue, totaling $221.3 million, leading to a 13% drop in their stock shares. The company also announced a debt exchange offer which further impacted their performance.
Stock Performance
The shares of Cumulus Media were trading at $3.90 on Tuesday, reflecting a 27% decline since the beginning of the year. Despite interest from national advertisers to increase radio buys, the company stated that ad demand remains inconsistent, creating uncertainty for the remainder of 2024.
Debt Exchange Offer
Cumulus Media New Holdings presented an offer to exchange existing 6.75% senior secured first-lien notes due in 2026 for new 8.75% notes due in 2029. Additionally, they are proposing to exchange term loans under their credit agreement for new term loans, as part of their debt restructuring plan.
S&P Global Ratings
S&P Global Ratings downgraded Cumulus to CC from B-, expressing concerns over the distressed nature of the proposed debt restructuring and the company’s heightened leverage position.
Overall, Cumulus Media faces challenges with revenue decline and debt restructuring as they navigate the fluctuating advertising landscape.
