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Dex Media Completes Financial Restructuring, Emerges From Chapter 11

August 02, 2016, 07:58 AM
Filed Under: Bankruptcy

Dex Media, Inc., one of the largest national providers of local marketing solutions for local businesses, announced that it completed its financial restructuring and emerged from Chapter 11 when its confirmed Plan of Reorganization (the “Plan”) went into effect on July 29, 2016.

Dex Media’s strengthened capital structure, with approximately $1.8 billion less total debt, enables the company to deepen its commitment to help local businesses thrive by developing and providing marketing solutions to help them grow their business. Today’s local businesses often find themselves in direct competition with national chains or subjected to the pricing whims of local on-demand marketplaces. Dex Media helps level the playing field and gives these businesses the edge to compete in today’s digital marketplace. Dex Media’s innovative products include social media marketing, digital presence management, online listings, performance tracking programs, and search engine optimization, as well as print and online yellow pages directories, for which the company was known historically.

“Today marks a fresh financial start for Dex Media,” said Joe Walsh, Dex Media President and CEO. “With the completion of our financial restructuring, we can now focus entirely on our strategy to offer a full range of marketing tools and services to help local businesses compete and win in today’s dynamic and hyper-competitive marketplace. We have assembled a world class management team and have the full support of new owners for our bold new business plan.”

Dex Media is now a privately-owned company and its shares are no longer available for trading on a public exchange. Previous shares of common stock have been canceled with no distribution to the holders of those shares. The Company’s management team, led by President and CEO Joe Walsh, remains in place. Per the Plan, Dex Media’s previous Board of Directors has disbanded and its new six-member Board of Directors includes representatives from the holders of the Company’s newly issued common stock.

Former lenders, including funds and accounts managed by Mudrick Capital Management, L.P., Paulson & Co. Inc., Ares Management LLC and/or their respective affiliates, who were members of the steering committee of the ad hoc group of Dex Media’s lenders, will own 100% of the equity of the reorganized Dex Media, subject to dilution from a management incentive plan, and $600 million of loans under the reorganized Dex Media’s new credit facility. Dex Media’s unsecured noteholders have received a $5 million cash payment and warrants to purchase up to 10% of the reorganized Dex Media’s equity in exchange for their approximately $300 million in claims.

Dex Media’s legal advisor in connection with the restructuring has been Kirkland & Ellis LLP. Alvarez & Marsal North America, LLC served as its restructuring advisor, and Andrew Hede from Alvarez & Marsal served as Chief Restructuring Officer. Moelis & Company LLC was the Company’s investment banker for the restructuring. The steering committee of the ad hoc group of Dex Media’s lenders was represented by Milbank, Tweed, Hadley & McCloy LLP as legal advisor and Houlihan Lokey as financial advisor in connection with the restructuring. JPMorgan Chase Bank, N.A. and Deutsche Bank Trust Company Americas, as agents under certain of the senior secured credit agreements, were represented by Simpson Thacher & Bartlett LLP as legal advisor to the agents.

Dex Media, Inc. 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.

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