Cumulus Media secured creditors have signed a cooperation agreement on the heels of the recent distressed debt exchange launched by the company, said two sources familiar with the matter.

The co-op went effective today and comprises more than 70% of the first lien loan and senior secured first-lien notes maturing in 2026. The ad-hoc group of creditors advised by Gibson Dunn also brought on board Guggenheim Partners as financial advisor, the sources noted.

The radio group launched a distressed debt exchange last week, offering holders of its USD 346m 6.75% senior secured first lien notes due July 2026 to exchange at a roughly 20% to 23% discount from par for new senior secured first-lien notes with an 8.750% coupon and 2029 maturity. Simultaneously, the company is offering to exchange the existing USD 300m term loan for a new senior secured term loan. The exchange, which expires on March 26, is conditioned on a minimum participation of at least 50% in principal amount of the existing term loan.

Cumulus reported last week a 45.3% decline in annual adjusted EBITDA in 2023 at USD 90.7m, down from USD 166m in 2022.

Cumulus emerged from Chapter 11 bankruptcy protection in June 2018. Paul Weiss acted as lead counsel to Cumulus during the Chapter 11, while Clarick, Gueron, Reisbaum acted as conflicts and special counsel, according to Debtwire’s Restructuring Database. Meanwhile, Alvarez & Marsal and PJT acted as financial advisors.

The 6.75% senior secured notes due July 2026 traded at 60 today, down from around 62 on 28 February, according to MarketAxess. The loan was quoted 69.83/71.5, according to Markit.

Cumulus, Guggenheim Partners and Gibson Dunn did not return requests for comment.