Cumulus Reduces Debt By $200 Million
The debt prepayment is being funded by the net proceeds of the previously announced sale of six radio stations — WPLJ/New York, WRQX/Washington, WYAY-FM/Atlanta, KFFG-FM/San Francisco, WZAT-FM/Savannah, GA and WXTL-FM/Syracuse, NY — to Educational Media Foundation, which closed on May 31, 2019, for $103.5 million in cash, as well as cash on hand generated from operations. Separately, the Company previously announced it had entered into an agreement to sell KLOS/Los Angeles to Meruelo Media for $43 million in cash. That transaction is still expected to close in the third quarter, and its net proceeds will also be used to pay down debt.
Berner continued, “I would like to thank the entire Cumulus team for the hard work and dedication which have produced such a tremendous record of achievement over the past year, and I have every confidence that, together, we will be able to further improve our financial position and continue to deliver on the goals we have laid out for the business.”