- OUTFRONT Media Inc. (NYSE: OUT) has announced that affiliates of Providence Equity Partners LLC have agreed to lead the purchase of $400 million in newly issued convertible preferred stock together with funds managed by Ares Management Corporation.
OUTFRONT Media Inc. (NYSE: OUT) has announced that affiliates of Providence Equity Partners LLC have agreed to lead the purchase of $400 million in newly issued convertible preferred stock together with funds managed by Ares Management Corporation.
What does OUTFRONT do? It utilizes technology, location, and creativity to connect brands with consumers outside of their homes through a diverse set of billboard, transit, and mobile assets across North America. And through its technology platform, OUTFRONT changes the ways advertisers engage audiences on-the-go.
What were the financial terms of this deal? It is $400 million of convertible perpetual preferred stock — which is convertible into shares of OUTFRONT Media Inc. common stock at a conversion price of $16.00 per share. The preferred stock carries a 7.0% dividend, payable at OUTFRONT’s option in cash or in-kind. And on an as-converted basis, the preferred stock will represent approximately 14.8% of our common shares outstanding.
In connection with the transaction and subject to relevant approvals, OUTFRONT expects to appoint Michael J. Dominguez, Managing Director at Providence as a new director to the board. The net proceeds from the offering will be likely used for general corporate purposes.
Goldman Sachs & Co. LLC acted as the company’s exclusive placement agent and Jones Day acted as legal advisor. And Providence was advised by Evercore and Weil, Gotshal & Manges LLP. Ares was advised by PJ Solomon and Paul, Weiss, Rifkind, Wharton & Garrison LLP.
Key Quotes:
“We recognized the value of liquidity and collaboration as we look through these uncertain times and consider the exciting growth opportunities that will arise in our industry. Our board was pleased to select Providence and Ares for their industry knowledge and expertise, and we believe that all of our stakeholders will benefit from their long-term investment and commitment.”
-Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media
“We are delighted to partner with OUTFRONT through this challenging economic environment and beyond. We are very familiar with their business and the industry from our over 30 years of specializing in media, and we believe the company has premier assets, attractive long-term fundamentals, and an exceptional leadership team. We believe that the steps OUTFRONT has taken to enhance its liquidity position will help ensure that the business can operate successfully and opportunistically with a strong balance sheet. We look forward to working with the management team and the board to create lasting value for all stakeholders.”
-Michael J. Dominguez, Managing Director at Providence
“We are excited to work with two world-class organizations in OUTFRONT Media and Providence Equity Partners. We believe OUTFRONT is a well-established industry leader with both top quality assets and a highly talented management team.”
-Scott Graves, Partner and Co-Head of Private Equity and Head of Special Opportunities at Ares
