Saturday, January 9, 2021

Urban One To Raise $825M To Refinance Existing Debt

Urban One Inc., the Silver Spring, MD-based media company with national radio and television holdings as well as a digital footprint, is looking to raise $825 million in a private debt offering, according to the Washington Business Journal

The notes would be due in 2028 and the proceeds from the sale would be used to repay existing notes due in 2022 as well as other shorter term credit facilities, according to a press release. As the notes will be offered privately, they will be unregistered and not subject to the Securities Act of 1933. There was no closing date listed for the offering. 

Urban One also reported preliminary fourth quarter and full year 2020 financial results along with the notice of the debt offering. The Black-owned media company’s fourth quarter significantly outperformed its fourth quarter of 2019, but the numbers were not so positive for the full year. The results come after Urban One launched a debit card in the fourth quarter as a new revenue stream.

Urban One expects fourth quarter net revenue of between $110 million and $114 million, which would be a 3.9% to 7.7% increase over the $105.9 million it reported in the fourth quarter of 2019. However, full year net revenue is expected to come in between $373 million and $377 million — a decline of 13.7% to 14.6%. The company had between $70 million and $73 million of cash on hand as of Dec. 31 and borrowing capacity of $37.5 million. 

Lastly, the company also named a new director as it entered 2021. B. Doyle Mitchell, president and CEO of D.C.’s Industrial Bank, was named to the board. Mitchell previously served on Urban One’s board from 2008 to 2011, and currently serves on the board of the National Bankers Association. 

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