Audacy Delisting Latest Chapter In Restructuring Effort

Audacy's effort to appeal the New York Stock Exchange's decision to delist its stock was unsuccessful as a result of the audio content provider's continued low share price, reports the Philadelphia Business Journal.

In a Monday filing with the Securities and Exchange Commission, the Philadelphia company said the NYSE's move to delist the stock will become effective on Nov. 10. Audacy (OTC: AUDA) said its stock will continue to trade over the counter under the symbol “AUDA.”

Trading of Audacy stock was halted May 16 with the NYSE informing the company that it would initiate a delisting proceeding. Audacy CEO David Field said at that time that the NYSE informed the company it was not in compliance with continued listing standards because its common stock traded at an “abnormally low selling price.”

The issue began in August 2022 when the NYSE notified the company that it was not in compliance with its listing standards, which require a minimum average closing price of $1 per share over 30 consecutive trading days. Audacy has been facing the prospect of delisting ever since.

June 30, Audacy implemented a 1-for-30 reverse stock split of the company’s Class A and Class B common stock in an effort to boost its share price and stave off delisting. The stock rose from 7 cents to $2.13. By Aug. 8, the stock fellow below the $1 threshold and never returned above it. The stock closed Monday at 42 cents and was trading late Tuesday morning at 39 cents.

“The NYSE’s determination has no impact on Audacy’s business strategy or operations,” Audacy said in a statement. “Audacy continues to focus on growing and enhancing its capabilities as a leading, multi-platform audio content and entertainment company, and continues to engage in discussions with its lenders to deleverage its balance sheet and improve its capital structure to position Audacy for long-term growth.”

Audacy is attempting to restructure $1.9 billion in debt and gain financial breathing room. The company said in a Friday SEC filing that it continues to have discussions with lenders to restructure its debt, a process that began in August.

The company provided updates for debt maturing on March 31, 2029, saying it had extended the grace period for defaults in interest payments on the notes. This means the grace period for the previously announced interest payment of around $18 million due on Sept. 30, will now end on Nov. 29, if not paid off earlier.

In addition, Audacy said it will use an additional 30-day grace period for its 6.5% senior secured second-lien notes, due May 1, 2027, with an interest payment of nearly $15 million scheduled for Nov. 1. The company also intends to utilize a three-business day grace for interest payments of about $17 million due on Oct. 31, under a credit agreement established on Oct. 17, 2016.

After reporting a second quarter net loss of $125.8 million in August, Audacy said it had deals in place to sell assets in Boston and Phoenix as it continues negotiations with its creditors. If those talks fail, the company said at the time that a bankruptcy filing could be on the horizon. The company linked its declining advertising revenue to macroeconomic issues such as inflation. It noted that things are “to a large extent, outside our control” since lenders hold most of the cards with any potential restructuring.

Audacy has more than 220 radio stations across the country.