Americas Middle Market Special Sits Tracker: Traditional Broadcasting Buckles Under Secular Ad Decline With 2 Distressed Transactions, 1 Ch. 11 Filing in May; Refinancing Drives 4 Downgrades in Industrials Sector

See below for pricing movement during May across select middle-market stressed and distressed companies:
 

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Restructuring Activity Accelerated Across Traditional Media Issuers

Restructuring activity accelerated across traditional radio and broadcasting issuers as secular pressure on advertising demand continued to push companies to resize their debt size via chapter 11, distressed exchanges and below-par debt repurchases.

Most notably, Beasley Broadcast Group, a radio station operator, completed a distressed exchange that converted approximately $184.1 million of existing 9.2% second lien notes due 2028 into approximately $98.5 million of new 10% senior secured second lien PIK notes due 2027, materially reducing second lien debt while subordinating nonparticipating holders through collateral releases and covenant stripping amid ongoing advertising weakness across traditional radio and broadcasting markets.

Similarly, Hubbard Radio, another radio station operator, recently purchased its $206.8 million outstanding term loan at below-par levels. S&P Global Ratings viewed the transaction as tantamount to a default, and Moody’s downgraded its probability of default rating to D-PD. The transaction followed continued operating underperformance tied to secular declines in broadcast radio and weak digital advertising growth, with S&P previously warning that Hubbard faced an elevated risk of breaching its 7x net leverage covenant.

These developments underscored continued stress across traditional radio and broadcasting issuers as advertising demand shifts toward streaming, podcasting and digital media platforms. Meanwhile, the chapter 11 of Spanish Broadcasting System can provide a case study in recovery values for creditors. Spanish Broadcasting System, a Miami-based cross-platform media company focused on U.S. Hispanic markets, filed for chapter 11 on May 11 after entering into a restructuring support agreement, or RSA, with a supermajority of its bondholders. An ad hoc group disclosed holdings of approximately 95% of the company’s prepetition senior secured notes, or 90% of total prepetition debt. During its bankruptcy, the company expects to reduce total debt to $70 million from $325 million. The senior secured noteholders are expected to take over the reorganized company. Key noteholders include Brigade Capital Management, Bayside Capital and Bardin Hill, as disclosed in the ad hoc group filing.

Outside traditional broadcasting, distressed communication services credits are tapping private credit to refinance. Orbcomm, a provider of industrial internet-of-things and satellite communications solutions, completed a $460 million private credit refinancing backed by Carlyle, Bain Credit and Morgan Stanley Private Credit, fully refinancing its existing debt facilities while adding committed undrawn liquidity capacity through a delayed-draw term loan and revolving credit facility. The company’s initial revolving credit facility matures in September 2026 and its term loan matures in September 2028.

Refinancing Pressure and Liability Management Activity Built Across Industrial Issuers

Refinancing pressure continued to build across industrial issuers, with four companies downgraded amid persistent cash burn, weakening liquidity and upcoming maturities. Although some secured private, asset-backed or sponsor-supported financing solutions extended a company’s runway, others continued to face unresolved refinancing needs ahead of 2026 and 2027 maturities.

Within industrial and transportation-related sectors, Wheels Up Experience, a private aviation provider, secured a $68 million secured mezzanine facility from Sankaty Jet Capital to support aircraft purchases tied to its fleet modernization plan, highlighting reliance on private and asset-backed financing solutions. Similarly, CoolSys, an HVAC and refrigeration solutions provider, amended its first lien term loan to add a PIK interest option through 2027 and received approximately $29 million of sponsor support through a junior PIK loan, while also extending the maturities of its asset-based lending facility and term loan to November 2029 and February 2030, respectively. The company has opportunities to grow within the expanding data center end markets, supported by a roughly $400 million pipeline in its professional solutions segment.

In contrast, refinancing and liquidity pressure continued to mount across other industrial companies. Wabash National, a commercial trailer and transportation equipment manufacturer, reported weak first-quarter results as softer demand across trailer and truck body markets drove a 20.4% decline in revenue and negative adjusted EBITDA of approximately $38 million compared with negative $9.2 million in the prior-year quarter. Moody’s subsequently downgraded the company to B3 and revised the outlook to negative, citing continued cash burn and elevated refinancing risk ahead of its $350 million ABL facility due September 2027.

Odyssey Logistics and Technology Corp., an intermodal freight logistics provider, is also facing mounting refinancing pressure ahead of its 2027 maturities. S&P recently downgraded the company to CCC+ and revised the outlook to negative, noting continued weak freight demand, depressed trucking rates and persistent negative free cash flow since 2023 that is expected to drive additional revolver usage and further pressure liquidity. Odyssey lenders were reported to be working with Gibson Dunn and preparing to enter negotiations with the company regarding upcoming maturities, and a cooperation agreement circulated to lenders. The company is working with Kirkland & Ellis and Greenhill to evaluate refinancing alternatives.

C&D Technologies, a battery manufacturer, is facing high refinancing risks of its 2026 maturity wall, including approximately $95 million drawn under its $180 million ABL facility and a $373 million first lien term loan, both outstanding as of Sept. 30, 2025, according to S&P, which recently downgraded the company to CCC. The December 2026 term loan maturity would accelerate the maturity of the ABL facility to 91 days before the term loan maturity if the debt is not refinanced or extended. Delays in receiving anticipated 45x tax credit proceeds have further complicated refinancing efforts, although improving telecom demand and growing data center backup power needs are potential growth drivers.

HDT Holdco, a defense infrastructure solutions provider, is also facing increasing refinancing and liquidity pressure, as its $40 million revolving credit facility becomes current in July 2026. S&P recently downgraded the company to CCC, warning that absent an extension on similar terms, HDT could face significant liquidity pressure that may impair its ability to meet operational cash needs and service debt obligations, as the company is expected to continue generating negative free cash flow through fiscal 2027 despite improving operating conditions.
 

M&A activities remained active in select sectors, such as healthcare, energy, industrial and media. While not indicative of a broad-based M&A rebound, the transactions generally reflected company-specific efforts to expand product offerings, improve liquidity, consolidate operations or reposition around core assets.

In healthcare, Artivion, a medical device and implantable human tissues manufacturer, completed its acquisition of Israeli medical device developer Endospan for a $175 million base purchase price, with the net upfront cash purchase price expected to total approximately $135 million after offsetting amounts outstanding under the amended and restated loan agreement between Artivion and Endospan. The company used its previously drawn $150 million delayed-draw term loan to fund the approximately upfront net purchase price. The acquisition followed FDA approval of Endospan’s NEXUS stent graft system and expands Artivion’s ability to commercialize the platform in the U.S. beyond its existing EMEA distribution footprint.

Within energy, Battalion Oil, an independent energy company, announced on April 15 that it had completed multiple midstream projects at its Monument Draw. In March it had acquired the site of approximately 7,090 net acres using common stock consideration and used proceeds from its West Quito divestiture to repay amounts outstanding under its term loan, while continuing to pursue refinancing and additional infrastructure projects to support development of its asset base.

Within media, Salem Media Group, a Christian and conservative-focused multimedia broadcaster, announced it will be acquired by the Christian Community Foundation, doing business as WaterStone, in a transaction that would take the company private at $1 per share, representing approximately a 250% premium to Salem’s recent trading price. The announcement followed weak first-quarter results driven by the loss of a podcaster and lower local programming revenue across its Christian, teaching and talk format radio stations, underscoring the continued operational pressure facing radio broadcasters amid broader secular weakness across broadcasting markets.

Within industrial, The Cook & Boardman Group, a distributor of commercial doors, frames and hardware, announced it is rebranding to CBX Solutions and consolidating its network of companies under a single identity. The company has also a history of growing through M&A, most recently announcing the acquisition of most of the operating assets of Assurance Media LLC on April 1, which expanded its structured cabling, audiovisual systems and premise security capabilities. Other recent acquisitions include Arch Street Glass on Jan. 6, which broadened its interior glass offerings, ranging from partition systems to specialty glass; and Norwood Hardware and Supply on Nov. 17, which expanded its commercial doors, frames and hardware distribution capabilities.
 

Sherritt International, a Canadian natural resource company, suspended participation in its Cuban joint ventures following expanded U.S. sanctions on Cuba, contributing to delayed financial filings and a cease-trade order issued by the Ontario Securities Commission.

In contrast, Aptim Corp., an environmental infrastructure services provider, benefited from federal and state infrastructure spending, securing a $689 million contract tied to federal Home Energy Rebate programs following prior environmental remediation contract awards.