Urban One capital raise and refinancing transaction

Davis Polk advised an ad hoc group of noteholders in connection with Urban One, Inc.’s capital raise and refinancing. As a part of the transaction, Urban One (i) issued $60.6 million in aggregate principal amount of new 10.500% first-lien senior secured notes due 2030 pursuant to a subscription offer that was backstopped by the ad hoc group, (ii) consummated a tender offer pursuant to which Urban One purchased $185.0 million in aggregate principal amount of its existing senior secured notes due 2028 for $111.0 million in cash and (iii) consummated an exchange offer for its existing senior secured notes for new 7.625% second-lien senior secured notes due 2031 in an aggregate principal amount of $291.0 million. Over 97.5% of the existing senior secured notes participated in the tender and exchange offers.

Urban One is an urban-oriented, multi-media company that primarily targets African-American and urban consumers. Its core business is its radio broadcasting franchise which is the largest radio broadcasting operation that primarily targets African-American and urban listeners. Urban One’s core radio broadcasting franchise operates under the brand “Radio One,” and the company also operates other brands, such as TV One, CLEO TV, Reach Media, iONE Digital and One Solution.

The Davis Polk restructuring team included partner Damian S. Schaible, counsel Michael Pera and associate Trevor D. Jones. The capital markets team included partner Yasin Keshvargar, counsel Brian Hecht and associate Christopher Martin. The finance team included partner Christian Fischer and associates Joseph William Bretschneider and Benjamin J. Carlin. The tax team included partner Kara L. Mungovan, counsel Leslie J. Altus and associate David J. Beer. All members of the Davis Polk team are based in the New York office.