Radio One Sells V-100/L.A. To Bonneville, Sets Stock Buyback
March 24, 2008 at 10:21 AM (PT)
As first mentioned on ALL ACCESS, rumors have become reality (NET NEWS 3/20), as it's confirmed that RADIO ONE sells Urban AC KRBV (V100)/LOS ANGELES to BONNEVILLE for $137.5 million.
The deal, brokered by STAR MEDIA GROUP's PETER HANDY on behalf of RADIO ONE, returns BONNEVILLE to the L.A. market, where it previously owned KBIG, KBRT-A and KZLA.
RADIO ONE CEO/Pres. ALFRED C. LIGGINS, III, stated, “This is an attractive transaction for RADIO ONE, as it frees up capital and management resources which can be re-deployed to execute our long-term strategy. We expect to use the proceeds from this transaction to reduce our leverage, accelerate our Internet strategy and re-commence a limited buy-back of our securities.” ROTHSCHILD INC. acted as financial advisor to RADIO ONE in connection with the transaction.
"We are very pleased to get back into LOS ANGELES again," BONNEVILLE Pres./CEO BRUCE REESE stated. "We look forward to bringing the BONNEVILLE brand to that vibrant market, with our commitment to quality, values-oriented programming and a long history of community service."
WPRS Deal Not Part Of The KRBV Transaction
Meanwhile, ALL ACCESS has learned that despite what you may have read elsewhere, the closing on the transaction of selling Gospel WPRS (104.1)/WASHINGTON from BONNEVILLE to RADIO ONE has been extended, and is not a "swap" with RADIO ONE and is in no way related to BONNEVILLE's purchase of KRBV/LOS ANGELES. The WPRS transaction was negotiated several months ago, long before there was thought to the KRBV transaction. RADIO ONE is still operating WPRS and both parties hope to close that deal, shortly.
Radio One Buys Back Stock
The Company also announced today that its Board of Directors has authorized a stock repurchase program for up to $150 million of RADIO ONE's Class A and Class D common stock through DECEMBER 31st, 2009. The amount and timing of repurchases will be based on pricing, general economic and market conditions, certain restrictions contained in agreements governing RADIO ONE's bank credit facilities and subordinated debt and certain other factors. The repurchase program does not obligate RADIO ONE to repurchase any of its common stock and may be discontinued or suspended at any time.