Urban One Inc. today will begin marketing efforts for an $825 million offering of seven-year (non-call three) senior secured bonds, sources said. An investor call is scheduled for 11 a.m. ET, with pricing expected Jan. 8.
Bookrunners for the deal are BofA Securities, Jefferies and Guggenheim.
Urban One, together with its subsidiaries, operates as an urban-oriented multimedia company in the United States. Net proceeds, together with cash on hand, will be used to repay or redeem existing loans and the company's 8.75% senior secured notes due December 2022 and 7.375% senior secured notes due April 2022.
S&P Global Ratings in November 2020 affirmed the CCC issuer credit rating on Urban One and removed all ratings from CreditWatch, where they were placed with negative implications in October. The CreditWatch revision followed Urban One's completion of an exchange offer for the $350 million of 7.375% senior secured notes due April 2022 for new 8.75% senior secured notes due December 2022, which the agency rated CCC, with a 6 recovery rating. Ratings at that time noted the company had an existing $350 million senior secured term loan ($321 million outstanding) and a $192 million senior unsecured term loan ($167 million outstanding).
Moody’s currently has a B3 corporate family rating for Urban One and its existing secured debt.
Alongside today’s deal announcement, the company released preliminary estimated financial results for the fourth quarter and full year ended Dec. 31, 2020. Urban One expects full-year consolidated adjusted EBITDA to be between $137 million and $139 million, up 2.6% to 4.1% year over year, and full-year consolidated net revenues between $373 million and $377 million, down 13.7% to 14.6% year over year.
