JUL 22, 1999 

CUMULUS MEDIA INC., Prices Follow-On Equity Offering

MILWAUKEE, WI July 22, 1999 - Cumulus Media Inc. (NASDAQ: CMLS), the nation’s third largest owner and operator of radio stations (based upon the number of stations owned or to be acquired pursuant to pending acquisition agreements), today announced the completion of its follow-on equity offering of approximately 9.7 million shares of its Class A Common Stock at a price of $24.125 per share, raising $233.1 million.  In addition, Cumulus has granted the underwriters an option to purchase up to 1,449,600 shares from the Company for the purpose of covering over-allotments, if any.  There are no selling shareholders.  The Company will receive 100% of the net proceeds from the offering.  Upon completion of the offering, the Company will have approximately 19.4 million shares of its Class A Common Stock outstanding.

Cumulus Media is a radio broadcasting company that, upon completion of its pending acquisitions, will own or operate 246 radio stations concentrated in 45 mid-sized U.S. markets.
The Company intends to use the net proceeds from the offering to redeem 35% of the original principal amount of its 13 ¾% Series A Cumulative Exchangeable Redeemable Preferred Stock due 2009, repay the principal amount outstanding under its existing senior credit facility and fund the completion of a portion of its pending acquisitions.  The Company also intends to use borrowings under a new $225 million senior credit facility being negotiated with its existing lenders to finance the balance of the pending acquisitions and for general corporate purposes.

This release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such State.  The offering of these securities shall be made only by means of the prospectus contained in an effective registration statement.  Copies of the prospectus relating to the offering may be obtained from Morgan Stanley Dean Witter, 1585 Broadway, New York, NY 10036, (212) 761-4000, Attention Prospectus Department.

The underwriters of the offering are Morgan Stanley Dean Witter, Lehman Brothers Inc., Bear, Stearns & Co. Inc. and Prudential Securities.
 

Contact:
Richard Weening, 414-615-2800
Daniel O'Donnell, 414-615-2800

 

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