Mood Media Initiates Next Step to Implement Prepackaged Financial Restructuring Plan

Mood Media, the world’s leading on-premise and connected media solutions company dedicated to elevating the Customer Experience, today announced that it has taken the next step to implement the “prepackaged” financial restructuring plan that will reduce the Company’s debt by approximately $404 million. The transaction provides the Company with the financial flexibility necessary for long-term success. Mood Media and certain of its subsidiaries have voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The Company’s international subsidiaries are not part of the Chapter 11 filing.

As previously announced on June 26, 2020, the Company entered into a comprehensive restructuring support agreement (the “RSA”) with certain of its lenders, noteholders and equity sponsors on the terms of the “prepackaged” financial restructuring plan. 100% of the Company’s first lien term loan lenders and 100% of its second lien PIK noteholders that timely submitted ballots voted to accept the prepackaged plan. The Company will seek confirmation of the prepackaged plan at a hearing scheduled for July 31, 2020.

The Company will continue operating with a primary focus on the health and safety of its employees, independent affiliates, and clients. Mood Media intends to build on its structure, support, and resources to continue serving its clients during the global COVID-19 pandemic and once the pandemic has passed.

“In the face of this unprecedented time, we are taking decisive actions to reimagine Mood Media and become an even better partner to our clients,” said David Hoodis, Chief Executive Officer of Mood Media. “The prepackaged financial restructuring plan we are now implementing is a key part of these efforts, as it provides a clear and expedited path to strengthening our financial position. With the unanimous support of our voting lenders and noteholders, we expect to move quickly through the court‑supervised process.”

Mr. Hoodis continued, “Since we announced our agreement with our financial stakeholders, we have spoken with many of our clients and business partners and appreciate their strong expressions of support and confidence. We look forward to continuing to work closely with our clients as they begin to open their businesses again and welcome back their employees and customers. I would also like to thank the Mood team for their resilience and unwavering dedication. Their hard work and commitment to providing superior client service underscores everything we do at Mood and will be the foundation for our reimagined business.”

As previously announced, the Company has received a commitment for up to $40 million of new capital from HPS Investment Partners, LLC and other first lien term loan lenders. The first lien term loan lenders will also receive their pro rata share of approximately $200 million of new loans on account of their prepetition first lien term loan claims. The new financing arrangements will be subject to Court approval and, together with cash generated from the Company’s ongoing operations, is expected to provide the Company with ample liquidity to continue operating in the ordinary course during and after the contemplated court-supervised process.

Subject to Court approval, the Company intends to pay vendors, suppliers, and independent affiliates for goods and services provided prior to the filing date in the ordinary course of business. Pursuant to the terms of the financial restructuring plan, which will also be subject to Court approval, the prepetition claims of vendors, suppliers, and independent affiliates will be unimpaired. The Company also intends to pay vendors, suppliers, and independent affiliates in the ordinary course for goods and services provided on or after the filing date.

Mood Media has filed a number of customary first day motions with the Court to support its operations during the court-supervised process, including the continued payment of employee wages and benefits without interruption. The Company expects to receive court approval for these requests.

Additional Information

Additional information is available on Mood Media’s restructuring website at www.moodmediarestructuring.com or by calling the Company’s Restructuring Hotline at (877) 606-3614 (toll-free in the U.S.) or (949) 569-5201 (for calls originating outside the U.S.). Questions can also be emailed to [email protected]. Court documents and additional information about the court-supervised process can be found at a website administrated by Mood Media’s claims agent, Prime Clerk, at https://cases.primeclerk.com/moodmedia.

Kirkland & Ellis LLP is acting as legal advisor to Mood Media, PJ SOLOMON is acting as its investment banker, and Berkeley Research Group, LLC is acting as its financial advisor.

About Mood Media

Mood Media is the world’s leading on-premise and connected media solutions company dedicated to elevating the Customer Experience. We create greater emotional connections between brands and consumers through the right combination of sight, sound, scent, social and systems solutions. We reach more than 150 million consumers each day through more than 400,000 subscriber locations in 100+ countries around the globe. Mood’s clients include businesses of all sizes and market sectors, from the world’s most recognized retailers and hotels to quick-service restaurants, local banks and thousands of small businesses. For more details: www.moodmedia.com.

Forward-Looking Statements

This press release contains “forward-looking statements” related to future events. Forward-looking statements contain words such as “expect,” “anticipate,” “could,” “should,” “intend,” “plan,” “believe,” “seek,” “see,” “may,” “will,” “would,” or “target.” Forward-looking statements are based on management’s current expectations, beliefs, assumptions and estimates and may include, for example, statements regarding our pursuing protection under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Cases”), the Company’s ability to complete the restructuring and its ability to continue operating in the ordinary course while the Chapter 11 Cases are pending. These statements are subject to significant risks, uncertainties, and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements, including risks and uncertainties regarding the Company’s ability to successfully complete a restructuring under Chapter 11, including: consummation of the restructuring; potential adverse effects of the Chapter 11 Cases on the Company’s liquidity and results of operations; the Company’s ability to obtain timely approval by the bankruptcy court with respect to the motions filed in the Chapter 11 Cases; objections to the Company’s recapitalization process or other pleadings filed that could protract the Chapter 11 Cases; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties; the Company’s ability to comply with financing arrangements; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities as a result of the Chapter 11 Cases; the effects of the Chapter 11 Cases on the Company and on the interests of various constituents, including holders of the Company’s common stock; the bankruptcy court’s rulings in the Chapter 11 Cases, including the approvals of the terms and conditions of the restructuring and the outcome of the Chapter 11 Cases generally; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Cases; risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Company’s ability to consummate the restructuring or an alternative restructuring transaction; increased administrative and legal costs related to the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; and other litigation and inherent risks involved in a bankruptcy process. Forward-looking statements are also subject to the risk factors and cautionary language described from time to time in the reports the Company files with the U.S. Securities and Exchange Commission. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. The Company has no obligation to update or revise these forward-looking statements and does not undertake to do so.

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