Cumulus, Creditors in Discussions Over Proposed Debt Exchange

Cumulus Media Inc. and some of its creditors have entered into discussions regarding the company’s proposed distressed exchange, according to people with knowledge of the situation.

The struggling radio broadcaster in February asked holders of its first-lien bonds and term loan, both due in 2026, to swap into new, longer-dated debt at a discount of about 20 cents on the dollar. Under the plan non-participating creditors would have their collateral stripped — diminishing the value of their debt.

Cumulus and its creditors are in agreement on the need to length the company’s maturities, said the people, who asked not to ...