Financial Warning Signs Posted For MediaCo

MediaCo Holding has obtained a one-month extension on a key loan, giving the multicultural broadcaster a short additional runway while its lenders continue to acknowledge ongoing defaults.

The company entered into a Third Amendment on November 2 to its First Lien Term Loan Credit Agreement, dated April 17, 2024, according to a Form 8-K filed with the SEC. The amendment pushes the maturity of the Delayed Draw Term Loans from October 31 to the earliest of November 30, the date the loans are accelerated or deemed accelerated, or 91 days before the maturity of any other debt exceeding a threshold in the credit agreement.

WhiteHawk Capital Partners, the administrative agent and collateral agent, acknowledged in the amendment that certain Defaults and/or Events of Default have occurred and are continuing. The agent and lenders reserved all rights and remedies. MediaCo and other loan parties reaffirmed their obligations and the security interests under the loan documents, and released the agent and lenders from known claims arising on or before the amendment date. The filing does not specify the nature of the defaults.

MediaCo expects to file the full text of the amendment as an exhibit to its Form 10-K for the fiscal year ending December 31, 2026.

The latest extension follows earlier pressure on the company’s credit facilities. On August 14, WhiteHawk and HPS Investment Partners issued a waiver after MediaCo failed to meet the Audio Adjusted EBITDA covenant. The company reclassified $63.3 million of previously long-term debt as current, and a separate amendment that month moved the Delayed Draw Term Loans maturity from July 30 to October 31. In April, MediaCo’s auditors at Deloitte issued a going concern warning, citing near-term debt maturities, a working capital deficit, and liquidity constraints.

MediaCo stations are:

New York City, New York

• WQHT (Hot 97) – 97.1 FM (Urban / Hip-Hop)
• WBLS – 107.5 FM (R&B / Soul)
• HD Subchannels: LUNA 107.5 HD2 and LA BUENA 97.1 HD2

Los Angeles, California

• KBUA – 94.3 FM (Qué Buena)
• KBUE – 94.3 FM (Qué Buena)
• KEBN – 94.3 FM (Qué Buena)
• KRQB – 96.1 FM (Riverside/San Bernardino - Qué Buena)
• KVNR – 1480 AM (Little Saigon Radio)

Dallas–Fort Worth, Texas

• KNOR – 93.7 FM (La Raza)
• KBOC – 98.3 FM
• KZZA – 106.7 FM

Houston, Texas

• KTJM – 98.5 FM (La Raza)
• KNTE – 101.7 FM
• KQQK – 107.9 FM (El Norte)
• KEYH (in regional asset clusters)

Beaumont–Port Arthur, Texas

• KQQK – 107.9 FM (El Norte)
• KTJM – 98.5 FM (La Raza)