Latest news with #EntravisionCommunicationsCorporation
Business Wire
16-07-2025
- Business
- Business Wire
Entravision Announces Strategic Amendment to Its Credit Agreement
BURBANK, Calif.--(BUSINESS WIRE)--Entravision Communications Corporation (NYSE: EVC), a global media and advertising technology company, announced that on July 15, 2025 it entered into a strategic amendment to its credit agreement. The move is intended to increase the company's financial stability and accelerate debt reduction, resulting in lower financial risk through the term of its credit facility, which matures in March 2028. 'We are pleased with the strategic changes we've made to our credit facility,' said Mark Boelke, Chief Financial Officer of Entravision. 'Reducing debt is a key priority for Entravision that will provide operational and financial stability and flexibility. The media industry is undergoing unprecedented changes and this amendment provides us with additional financial flexibility to navigate these changes and build shareholder value.' Key provisions of the amendment include: Accelerated debt reduction Scheduled quarterly term loan payments increased to $5 million from $2.5 million. This follows a voluntary prepayment of $10 million in the second quarter of 2025 and further strengthens the company's low leverage ratios. Revolving credit facility commitments decreased to $30 million from $75 million, optimizing available liquidity while reducing commitment fees. Enhanced financial stability The net leverage ratio will be calculated on a trailing eight-quarter basis, instead of a trailing four-quarter basis, and the maximum permitted net leverage ratio increased to 4.0x from 3.25x. These changes are intended to moderate the effects of cyclical political advertising revenue, and provide a more stable leverage profile and greater operational flexibility. Additional details about the amendment to the credit agreement are available in the company's Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission. About Entravision Communications Corporation Entravision is a global media and advertising technology company. In the U.S., we provide video, audio and digital marketing services to local and national advertisers through a portfolio of television and radio stations and digital advertising services that target Latino audiences. Our advertising technology business provides programmatic advertising technology and services to advertisers and app developers globally. Entravision is the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under the ticker: EVC. Learn more about us at Forward-Looking Statements This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.
Yahoo
29-05-2025
- Business
- Yahoo
Entravision Communications Corporation (EVC): A Bull Case Theory
We came across a bullish thesis on Entravision Communications Corporation (EVC) on Substack by TheYoungValueHunter. In this article, we will summarize the bulls' thesis on EVC. Entravision Communications Corporation (EVC)'s share was trading at $1.9 as of 21st May. An aerial view of a broadcasting company's television stations, showing the power of the company's media presence. Entravision Communications (EVC) has endured significant challenges, including a 53% revenue hit from Meta's ASP program termination and a 60% stock decline. Yet, under CEO Michael Christenson's leadership, the company has initiated a strategic transformation. EVC streamlined operations, prioritized dividends, and realigned executive incentives toward performance and long-term value creation. Management's decision to forgo cash bonuses in favor of RSUs and PUs with 200–600% stock price hurdles highlight deep alignment with shareholders. A simplified capital structure following the founder's passing has further increased the company's attractiveness as an acquisition target. EVC operates in two segments: Media and Ad-Tech. While Media EBITDA has declined, the segment retains significant strategic value in a deregulated environment, especially as the FCC under Chairman Brendan Carr may lift ownership caps and renew auction authority. The Ad-Tech segment, growing at 42% annually, now represents 40% of sales and may surpass Media, making it a strong candidate for a partial or full sale at a premium valuation. EVC's underappreciated spectrum licenses, valued at up to $276M using MHz-pop metrics, could be monetized through a future FCC auction. A complete or piecemeal sale—Media, Ad-Tech, or spectrum—could unlock an EV of $700M, over 3x the current valuation. Risks remain, including execution, regulatory setbacks, and macro headwinds, but with industry tailwinds, a leaner cost base, and high insider ownership, EVC offers compelling upside. With a dividend yield nearing 11%, shareholders are paid to wait for multiple catalysts to close the gap between price and value. Entravision Communications Corporation (EVC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held EVC at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of EVC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EVC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
