Dex Media Enters into Forbearance Agreement and Receives Term Sheet and Restructuring Support Agreement from Senior Lenders
November 05 2015 - 10:00AM
Business Wire
Dex Media, Inc. (NASDAQ:DXM), one of the largest national
providers of social, local and mobile marketing solutions to local
businesses, today announced it has entered into a forbearance
agreement with lenders under its senior secured credit facilities.
The agreement is effective through November 23, 2015, pending
certain conditions.
In addition, the Company announced it has received a term sheet
and restructuring support agreement (RSA) from the ad hoc committee
of lenders holding more than 50% of its senior secured credit
facilities. The Company and its advisors are reviewing the term
sheet and RSA, and are continuing negotiations with the Company’s
lenders with a goal of agreeing on terms of a consensual
restructuring.
“Constructive discussions with our lenders over the past few
months have now led to a term sheet and restructuring support
agreement. The forbearance agreement provides additional time to
agree on a plan to restructure our debt facilities,” said Joe
Walsh, Dex Media President and CEO. “We remain focused on
implementing our long term business plan and putting in place the
right strategic, operational and financial structure to support our
business for many years to come.”
As previously announced, the Company elected to take advantage
of a 30-day grace period to make an interest payment due on its
senior subordinated notes, which was due on September 30, 2015. The
Company did not make the interest payment within the grace period,
and as a result, the Company’s bondholders have declared the senior
subordinated notes to be immediately due and payable.
The Company’s liquidity position remains strong, with a cash
balance of approximately $205.3 million as of October 30, 2015, and
its employees, clients and vendors should see no disruption to
current operations as a result of this announcement.
About Dex Media
Dex Media (NASDAQ: DXM) is a full-service media company offering
integrated marketing solutions that deliver measurable results. As
the marketing department for hundreds of thousands of local
businesses across the U.S., Dex Media helps them win, keep and grow
their customer base. The company's widely used consumer services
include the DexKnows.com® and Superpages.com® search portals and
applications as well as local print directories. For more
information about the company, please visit www.DexMedia.com.
Forward-Looking Statements
Some statements included in this release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and the federal securities
laws. Statements that include the words “may”, “will”, “could”,
“should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”,
“expect”, “preliminary”, “intend”, “plan”, “project”, “outlook” and
similar statements of a future or forward-looking nature identify
forward-looking statements. You should not place undue reliance on
these statements, as they are not guarantees of future performance.
Forward-looking statements provide current expectations with
respect to our financial performance and future events with respect
to our business and industry in general. Forward-looking statements
are based on certain assumptions and include any statement that
does not directly relate to any historical or current fact.
Forward-looking statements address matters that involve risks and
uncertainties, and include, without limitation, future operating
and financial performance of the Company, the implementation of the
business transformation program and the ability of the Company to
retain existing business and to obtain and retain new business.
Accordingly, there are or will be important factors that could
cause our actual results to differ materially from those indicated
in these statements. We believe that these factors include, but are
not limited to, the risks related to the following: our ability to
provide assurance for the long-term continued viability of our
business; our non-compliance with certain covenants under our
senior secured credit facilities and our senior subordinated notes;
our ability to comply with the forbearance agreement or the risk
that the forbearance agreement is terminated; limitations on our
operating and strategic flexibility and the ability to operate our
business, finance our capital needs or expand business strategies
under the terms of our credit facilities; limited access to capital
markets and increased borrowing costs resulting from our leveraged
capital structure and debt ratings; our ability to obtain
additional financing or refinance our existing indebtedness on
satisfactory terms or at all; our ability to accurately report our
financial results due to a material weakness in our internal
control over financial reporting; possible changes in our credit
rating; changes in our operating performance; our ability to
implement our business transformation program as planned; our
ability to realize the anticipated benefits in the amounts and at
the times expected from the business transformation program; the
risk that the amount of costs associated with our business
transformation program will exceed estimates; reduced advertising
spending and increased contract cancellations by our clients, which
causes reduced revenue; declining use of print yellow page
directories by consumers; our ability to collect trade receivables
from clients to whom we extend credit; credit risk associated with
our reliance on small and medium sized businesses as clients; our
ability to anticipate or respond to changes in technology and user
preferences; our ability to maintain agreements with major Internet
search and local media companies; competition from other yellow
page directory publishers and other traditional and new media
including increased competition from existing and emerging digital
technologies; changes in the availability and cost of paper and
other raw materials used to print our directories; our reliance on
third-party providers for printing, publishing and distribution
services; our ability to attract and retain qualified key
personnel; our ability to maintain good relations with our
unionized employees; changes in labor, business, political and
economic conditions; changes in governmental regulations and
policies and actions of federal, state and local municipalities
impacting our businesses; the outcome of pending or future
litigation and other claims; and other events beyond our control
that may result in unexpected adverse operating results.
The foregoing factors should not be construed as exhaustive and
should be read together with the other cautionary statements
included in this and other periodic reports we file with the
Securities and Exchange Commission “SEC”, including the information
in “Item 1A. Risk Factors” in Part I of our Annual Report on Form
10-K for the fiscal year ended December 31, 2014, and Quarterly
Reports on Form 10-Q, which is incorporated herein by reference. If
one or more events related to these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be
incorrect, actual results may differ materially from what we
anticipate. All forward-looking statements included in this report
are expressly qualified in their entirety by the foregoing
cautionary statements. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof or, in the case of statements incorporated by
reference, on the date of the document incorporated by reference
and, other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20151105005401/en/
for Dex Media, Inc.Chuck Burgess,
212-371-5999clb@abmac.comorRivian Bell,
213-630-6550rlb@abmac.com