Cumulus Media has announced a public offering of $80 million of its Class A common stock, pursuant to an effective shelf registration statement. In addition, Cumulus expects to grant the underwriter an option for a period of 30 days to purchase up to an additional $12 million of the Class A common stock.
Cumulus intends to use approximately $77.6 million of the net proceeds from the offering to redeem all outstanding shares of the Company's Series B preferred stock, including accrued and unpaid dividends. The remaining net proceeds from the offering, if any, including any net proceeds from the underwriter's exercise of its option, are expected to be placed in the Company's corporate treasury and used for general corporate purposes.
In its SEC filing, Cumulus also revealed its fiscal expectations for Q3 2013, predicting revenue between $279 million and $281 million. In 2012's third quarter, revenue was $275.4 million. The SEC filing also revealed more specifics about the finances behind its recent deals with Dial Global (now WestwoodOne), Townsquare Media and Rdio. You can read the complete filing, via the SEC's website, here.