Urban One announced a comprehensive debt refinancing program that exchanges all of its 7.375% senior secured notes due 2028 for new 7.625% senior secured notes due 2031, and offers a tender component that allows holders to sell up to $185 million of the existing notes for $111 million in cash. The company also offers a subscription to purchase up to $60.6 million of new first‑lien senior secured notes due 2030, providing additional liquidity and a longer‑term debt structure.
The refinancing comes against a backdrop of declining revenue and profitability. In the third quarter of 2025, Urban One reported net revenue of $92.7 million, a 16.0% drop from $110.3 million in the same period a year earlier. Operating income fell to $2.5 million from an operating loss of $26.2 million in Q3 2024, and net loss widened to $2.8 million ($0.06 per share). Adjusted EBITDA for the quarter was $14.2 million, down from $25.4 million in Q3 2024, reflecting weaker advertising demand across radio, digital, and cable TV segments.
The company’s management explained that the refinancing is designed to extend debt maturities, reduce overall interest costs, and improve financial flexibility amid a challenging advertising market. By moving from 2028 to 2031 maturities and adding a 2030 first‑lien facility, Urban One aims to lower its debt‑to‑equity ratio and better align its capital structure with the slower revenue growth trajectory. CEO Alfred C. Liggins noted that the company is “focusing on controlling costs, managing debt, leverage and liquidity” as it navigates soft market conditions.
Market reaction to the refinancing announcement was tempered by recent credit rating actions. Moody’s downgraded Urban One to Caa2, citing debt‑to‑EBITDA risks and exposure to secular declines in broadcast radio and cable TV, while S&P upgraded the rating to CCC+ but maintained a negative outlook. These actions underscore investor concerns about the company’s high leverage and the headwinds facing its core media segments.
The refinancing provides a tailwind by extending maturities and potentially lowering interest expense, but it also signals that Urban One is taking defensive steps to shore up its balance sheet. The company’s focus on cost control and debt management, combined with the new debt structure, positions it to weather continued revenue declines while preserving the capacity to invest in growth opportunities where the market allows.
The overall impact of the refinancing is a more stable financial foundation, but the company remains under pressure from declining advertising demand and high leverage. Management’s emphasis on cost discipline and liquidity management suggests a cautious approach to future capital allocation until the advertising market recovers.
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