The Gores Group Takes Control Of Westwood One

Private equity firm and it’s biggest shareholder, The Gores Group is taking a 73% stake in Westwood One as it buys stock and helps the company refinance $241 million in debt. As part of the refinancing Gores will purchase $25 million of new preferred stock and guarantee credit support for a $20 million subordinated term loan and a $15 million unsecured revolving line of credit. If the restructuring is approved by regulators, current stockholders’ stake will fall to less than 3%. “The refinancing is an essential part of our turnaround plan,” said Pres./CFO Rod Sherwood “We appreciate that our lenders, Gores and our other investors, continue to value our business and recognize the opportunity for long-term growth. A successful completion of the refinancing will allow us to continue to focus on delivering superior content and service, cost effectively, to Westwood One customers.”

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