2021-01-25 06:05:58 TSQ Townsquare Media
01/25/21 01/2506:05 01/25/2106:05 | Townsquare Media authorizes share repurchase of 10 million shares minimumTownsquare Media has entered into an agreement to repurchase a minimum of 10 million of the 12.5 million shares of Class A common stock, shares of Class B common stock and warrants held by funds managed by Oaktree Capital Management for $6.40 per security, which reflects a 19% discount from the closing price of the Class A common stock on January 22. The repurchase was approved by the Board of Directors following the recommendation of a committee of independent and disinterested directors. With this transaction, Oaktree will be selling approximately one third of its Class A common stock, all of its Class B common stock and at least the majority of its warrants. The aggregate purchase price is expected to be at least $64M, subject to the company's ability to elect to purchase additional securities at closing of the repurchase. At closing, the repurchased securities will be retired and, subject to the company's election to repurchase additional securities, the company's outstanding securities will be reduced from approximately 28 million to approximately 18 million. At closing, the composition of the Company's Board of Directors will remain the same. Additionally, fifteen months after the closing of the repurchase, the company has the option to purchase all of the remaining securities from Oaktree, and Oaktree has the option to sell all or a portion of its remaining securities to the company, at a purchase price per security of $6.40 in cash. | |
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