On Friday (3/20), Beasley Broadcast Group filed a Form 8-K with the Securities and Exchange Commission revealing it is entering into a Transaction Support Agreement with 98.7% of holders 11.000% Senior Secured First Lien Notes due 2028 and 76.5% of the aggregate
outstanding principal amount of the 9.200% Senior Secured Second Lien Notes due 2028. This exchange offer includes an exchange of all of the Existing Second Lien Notes for newly issued 10.000% Senior Secured Second Lien PIK Notes due 2027 at an exchange ratio of 50.0% of the aggregate principal amount of the Existing Second Lien Notes tendered for exchange, and an offer to purchase up to $15,899,000 of the Existing First Lien Notes at a price equal to 100% of the par value thereof.
The upshot of this is that if these offers are accepted, lien holders will have a lot of control over how the company operates. They will be allowed to appoint a director to sit on the company’s board of directors. But the most telling part of this plan is that it allows for lien holders to exchange their debt for equity – meaning they could assume control of the company. Beasley provided “cleansing information” to lien holders in the form of a profit & loss statement ahead of its 2025 Q4 and 2025 full year financial statements that indicates a significant decline in audio net revenue “driven by continued weakness across the industry as a result of reduced consumer sentiment.” We’ll know soon enough whether this goes forward as the Transaction Support Agreement will terminate on May 15, 2026 if it’s not consummated.