Allen Media to Cut....Again
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A GM at an Allen Media station told the staff that they should not believe FTVLive and no cuts were planned.
Well, it didn’t happen at the beginning of September, but it sure did in the middle of the month.
Bloomberg came out this week and reported what FTVLive FIRST told you. Bloomberg writes Byron Allen's Allen Media is planning deeper cost cuts as it stares down debt maturities, and has retained advisers, according to people familiar with the matter.
Allen has engaged Moelis & Co. and Kirkland &Ellis as its own legal counsel, some of the people said, asking not to be identified because the discussions are private.
S&P Global Ratings said Allen Media faced "elevated refinancing risk due to its substantial debt burden" and downgraded the company.
Allen Media's debt has been trading at distressed levels over the last few months. The company's $840 million term loan which is maturing in 2027, was trading at around 65 cents on the dollar as of Tuesday, down from 88 cents in May, according to data compiled by Bloomberg.
"We're 100% in compliance with all of our lenders," Allen Media said in an emailed statement, adding its term loan isn't due until February 2027. "We're highly confident that we will successfully refinance at that time or before."
What does this all mean?
As FTVLive FIRST reported, it appears that large cuts will be happening at Allen Media outlets.
Stay tuned…
