Tuesday, October 8, 2013

Cumulus Looks To Raise $80M In New Stock Offering

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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