8-30-13
Townsquare Media is picking up 71 new radio stations thanks to Cumulus' need to raise cash to purchase Dial Global. Townsquare Executive Vice President Alex Burkett tells Radio Ink, "We are excited about the brands we are acquiring and the teams that make those brands great. We hope to learn more about how these brands have been built and operate over time and hope to bring Townsquare?s growth oriented operating strategy into the mix going forward."
Townsquare announced three transactions with Cumulus and Peak II Holding which, upon consummation, will result in Townsquare acquiring assets including 71 radio stations in 15 markets. Pro forma for the Transactions, Townsquare will own 312 radio stations in 66 markets and have operations in 25 states, making it the third largest owner of radio stations in the United States and the largest, best-capitalized owner and operator of radio stations solely focused on small and mid-sized markets.
Townsquare CEO Steven Price said, "These transactions represent the continued evolution of Townsquare Media into one of the nation?s largest local media companies and allow us to reach a scale which opens the door to new strategic opportunities. The assets we are adding to our portfolio are market-leading brands with strong competitive positions in their respective small and mid-sized markets. We are excited by the opportunity to deploy our differentiated local-media strategy across a broader footprint in order to better serve our communities and our advertising clients."
In connection with the Transactions, Townsquare is acquiring assets including 53 radio stations (three of which will be assigned to a divestiture trust) in 12 markets (Battle Creek, MI; Cedar Rapids, IA; Danbury, CT; Faribault-Owatonna, MN; Kalamazoo, MI; Lansing, MI; Portland, ME; Portsmouth-Dover-Rochester, NH; Quad Cities, IA-IL; Rochester, MN; Rockford, IL; and Waterloo, IA) from Cumulus for cash. Townsquare is also acquiring Peak, which owns assets including 11 radio stations in 2 markets (Boise, ID and Fresno, CA) for cash and equity units of Townsquare. Finally, Townsquare will exchange certain assets including 5 radio stations, in Fresno it is acquiring from Peak, for Cumulus assets including 15 radio stations in two markets (Dubuque, IA and Poughkeepsie, NY) and a de minimis cash settle-up payment in favor of Townsquare. Intotal, Townsquare will be acquiring 68 stations from Cumulus, three of which will be assigned to a divestiture trust, and eleven Peak stations, five of which will be exchanged to Cumulus, resulting in a net increase of 71 stations.
Townsquare expects to finance the Transactions with a mix of secured and unsecured debt financing,Townsquare equity units and cash on hand. Townsquare has received debt financing commitments from its various financing partners in connection with the transactions and will complete its financing in compliance with the covenant package of Townsquare Radio LLC?s existing Senior Unsecured Notes indenture.
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