Cumulus Media Inc. announced Monday that it has commenced an
underwritten public offering, subject to market and other conditions, of $80.0
million of its Class A common stock pursuant to an effective shelf registration
statement. In addition, Cumulus expects to grant the underwriter an option for
a period of 30 days to purchase up to an additional $12.0 million of the Class
A common stock.
Cumulus intends to use approximately $77.6 million of the
net proceeds from the offering to redeem all outstanding shares of the
Company's Series B preferred stock, including accrued and unpaid dividends. The
remaining net proceeds from the offering, if any, including any net proceeds
from the underwriter's exercise of its option, are expected to be placed in the
Company's corporate treasury and used for general corporate purposes.
RBC Capital Markets is serving as the sole book-running
manager.
A shelf registration statement relating to the securities in
this offering has been filed with the Securities and Exchange Commission and
has become effective.
When available, copies of the preliminary prospectus
supplement, prospectus supplement and accompanying base prospectus relating to
the offering may be obtained free of charge on the Securities and Exchange
Commission's website at www.sec.gov.
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