Next to iHeart’s $5.8 billion, $1.8 billion in debt doesn’t look all that bad.
But it is hurting Entercom even as the company rushes to cut operating expenses because their debt keeps growing – not something they want to draw attention to.
When radio groups make debt payments by selling assets and redirecting some of the profit to de-lever debt, that’s one thing.
But the mark of a company that has “good bones” is when they pay down debt from cash flow.
Short of that, Entercom expenses must be cut deeper and the fastest way to do that is “dislocations” – the kind iHeart did.
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