AAA Townsquare is the place for $144m IPO

Townsquare is the place for $144m IPO

US-based digital marketing and entertainment company Townsquare Media has filed for an initial public offering that could raise up to $143.8m.

Shareholders in Townsquare with stakes above 5% include GE Capital, an investment subsidiary of industrial manufacturer General Electric that holds 18%, Oaktree, which owns 63%, and SOF Investments.

Founded in 2010 following the bankruptcy of its predecessor company Regent Communications, Townsquare operates as a diversified media, entertainment and marketing business, running 312 radio stations and more than 325 local comparison websites.

The company has raised about $144m in funding since then. It made a $10.1m loss in 2013 from revenues of $268.6m.

Townsquare will use the proceeds from the IPO to repay outstanding senior debt, much of which was issued in November to finance the $281m acquisition of radio stations from media holding companies Cumulus and Peak.

BofA Merrill Lynch, Jefferies and RBC Capital Markets are the joint bookrunners for the offering, while Guggenheim Securities and Macquarie Capital are also acting as underwriters.

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