Tuesday, February 25, 2025
Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New credit agreement. On February 19, 2025, the company entered into a five year $490 million credit agreement with Bank of America. The agreement is comprised of a $470 million term loan and a $20 million revolving credit facility, both of which mature on February 19, 2030. Notably, we believe the favorable agreement provides the company with a long runway and should assuage investor debt refinancing concerns.
Termination of old agreement. The company utilized net proceeds from the new credit agreement and its cash position to immediately retire its prior credit agreement. As such, $453 million from the term loan and roughly $10 million from the revolving credit facility were used to retire the outstanding $467.4 million 6.875% senior secured notes that were due in 2026.
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