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Dex Media completes financial restructuring, emerges from Chapter 11

By | 08.01.16

Strengthened capital structure deepens Company’s commitment to provide local businesses with innovative digital marketing tools

DALLAS, August 1, 2016 – Dex Media, Inc. (“Dex Media” or the “Company”), one of the largest national providers of local marketing solutions for local businesses, today 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.

About Dex Media, Inc.

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. The company’s widely used consumer services include the DexKnows.com® and Superpages.com® search portals and mobile applications as well as local print directories. For more information about the company, please visit www.DexMedia.com.

Forward-Looking Statements

Some statements included in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “project”, “outlook” and similar statements of a future or forward-looking nature identify forward-looking statements. You should not place undue reliance on these statements, as they are not guarantees of future performance. Forward-looking statements provide current expectations with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements are based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: the Company’s ability to obtain Court approval with respect to motions in the Chapter 11 cases; the effects of the Court rulings in the Chapter 11 cases and the duration and outcome of the Chapter 11 cases in general; risks associated with third party motions in the Chapter 11 cases, which may interfere with the ability to consummate the Plan; increased administrative and restructuring costs related to the Chapter 11 cases; the Company’s ability to maintain adequate liquidity to fund operations during the Chapter 11 cases and thereafter; the Company’s future operating and financial performance; the occurrence of any event, change, or other circumstance that could give rise to the termination of the restructuring support agreement; our ability to retain existing business and obtain and retain new business; general economic or business conditions affecting the markets we serve; our ability to attract and retain key managers; increased competition in our markets; and our ability to obtain future financing due to changes in the lending markets or our financial position. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Abernathy MacGregor
Rivian Bell, 213-630-6550
rlb@abmac.com

or
Chuck Dohrenwend, 212-371-5999
cod@abmac.com