Urban One, Inc. is offering to exchange all of its outstanding 7.375% Senior Secured Notes due 2028 for newly issued 7.625% Senior Secured Notes due 2031, together with cash consideration. The aggregate principal of the existing notes is approximately $487.8 million, and the exchange will provide holders with a higher coupon and a longer maturity while giving the company additional liquidity.
The company is also launching a tender offer that will purchase up to $185 million of the existing notes for up to $111 million in cash. Holders who tender up to the $185 million cap will receive $600 in cash for every $1,000 of principal. Any principal tendered beyond the cap will be exchanged for the new 2031 notes and $3.75 in cash per $1,000 of principal. In parallel, Urban One is offering a subscription to purchase up to $60.6 million of 10.5% first‑lien senior secured notes due 2030. Subscribers will receive a pro‑rated portion of the new first‑lien notes, and a backstop commitment from supporting noteholders covers roughly 73% of the outstanding principal, with a 3% premium on the total aggregate principal of the new notes.
The exchange and tender offer are conditioned on the company’s concurrent refinancing of its existing asset‑based lending facility. The cash consideration for the exchange portion is part of the overall package, and the company is seeking consent to amend the indenture to eliminate restrictive covenants and default provisions that could limit future flexibility.
Urban One’s decision to restructure its debt comes amid a period of declining revenues and high leverage. Revenue fell 16.0% in Q3 2025, and the company posted a net loss of $0.06 per share, missing analyst expectations. Management has repeatedly emphasized cost containment and debt reduction as top priorities. By extending the maturity of its obligations and providing immediate cash, the company aims to improve liquidity, reduce interest expense, and create a more sustainable capital structure.
CEO Alfred C. Liggins said the company’s focus remains on controlling costs, managing debt, and maintaining liquidity. He noted that the company is “continuing to de‑lever and strengthen its balance sheet” and that the new notes will give the firm a longer runway to execute its strategic initiatives.
The debt exchange and tender offer will reduce Urban One’s short‑term debt load, extend the maturity of its obligations, and provide a liquidity cushion that can be used to support ongoing deleveraging efforts. The move is expected to lower the company’s overall debt‑to‑equity ratio and improve its ability to weather continued advertising market headwinds.
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