Headquartered in Englewood, Colorado, NextMedia Group Inc. was a media advertising company comprised of radio broadcast, outdoor display and interactive divisions. The company owned and operated more than 33 radio stations and 5,700 outdoor advertising displays in 10 suburban markets across the U.S. Roughly 65% of NextMedia’s revenue was attributed to radio advertising and 35% to outdoor display ads purchased by smaller, local retail and service provider companies. However, with the onset of the severe recession in 2009, coupled with dynamics reshaping the media industry, NextMedia experienced a sharp decline in radio and display revenues. As a result, NextMedia fell behind on monthly payment obligations and the company was forced to consider strategic alternatives.
NextMedia’s complex capital structure included more than $260 million in total debt (made up of roughly $180 million in first lien debt and $80 million in second lien debt) financed by 43 institutional investors. Because of Carl Marks Advisors’ unique capabilities in both financial restructuring advisory and operational assessment, they were engaged as the exclusive financial advisor to lead the first lien steering committee through the restructuring of NextMedia’s capital structure.