Cumulus Media Inc. (Nasdaq:CMLS) announced Wednesday that it
has priced its previously announced underwritten public offering of 16,400,000
shares of its Class A common stock at a price to the public of $5.00 per share.
Cumulus has also granted the underwriters a 30-day option to
purchase up to an additional 2,460,000 shares of Class A common stock. The
offering is expected to close on or about October 16, 2013, subject to the
satisfaction of customary closing conditions.
Cumulus expects to receive net proceeds from the offering of
approximately $77.6 million after underwriting discounts and commissions and
estimated offering expenses (or approximately $89.3 million if the underwriters
exercise their option to purchase additional shares of Class A common stock in
full).
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, are expected to be placed in
the Company's corporate treasury and used for general corporate purposes.
RBC Capital Markets is acting as the sole book-running
manager and Macquarie Capital, CRT Capital and Noble Financial Capital Markets
are acting as the co-managers for the offering.
A shelf registration statement relating to the securities in
this offering has been filed with the Securities and Exchange Commission and
has become effective.
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