Houlihan Lokey Advises Townsquare Media

Houlihan Lokey is pleased to announce that Townsquare Media, Inc. (Townsquare) has repurchased the entirety of Oaktree Capital Management LP’s (Oaktree’s) 45% stake in the company at $6.40 per security and subsequently retired those securities on March 9, 2021.

Townsquare is a community-focused digital media, digital marketing solutions, and radio company focused outside the top 50 markets in the U.S. Businesses include Townsquare Interactive, a digital marketing services subscription business providing web sites, search engine optimization, social platforms, and online reputation management for approximately 22,750 SMBs; Townsquare IGNITE, a proprietary digital programmatic advertising technology with an in-house demand and data management platform; and Townsquare Media, a portfolio of 322 local terrestrial radio stations in 67 cities with corresponding local news and entertainment websites and apps, and a network of national music brands, including XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com. It is listed on NYSE and has an enterprise value of approximately $770 million.

The purchase price of $6.40 per security reflected a 39% discount to the closing price of the Class A common stock immediately prior to the closing of the transaction, and a 19% discount to the pre-announcement share price. The transaction retired all the high voting shares held by Oaktree, the company’s historical controlling shareholder. The aggregate purchase price for the securities was funded by the company with cash on hand. The transaction is expected to be immediately accretive to shareholders on a free cash flow per share and adjusted earnings per share basis. The transaction was announced on January 25, 2021, and closed on March 9, 2021.

Houlihan Lokey served as the exclusive financial advisor to a special committee of the board of directors of Townsquare.

This deal further demonstrates Houlihan Lokey’s leading position in advising media companies and highlights its significant experience advising public corporations on complex transactions.