Nassau Restructures, Goldman Sachs Gets 85% Equity
May 8, 2009 at 6:54 AM (PT)
NASSAU BROADCASTING has restructured it debt, cutting a deal with GOLDMAN SACHS for 85% equity in the company.
NASSAU BROADCASTING Chairman/CEO LOU MERCATANTI recently wrote to the staff, "As some of you may know, NASSAU has been in recent negotiations regarding a restructuring of its current credit facility with our Lender GOLDMAN SACHS. Our credit facility became due on SEPTEMBER 30, 2008 and I, along with our corporate team, have been working with our lenders to come up with a viable plan to refinance or restructure the company's debt in the face of the country's worst credit crisis and advertising markets in decades. I am pleased to announce today that we have signed a formal restructuring agreement whereby our lenders have agreed to a debt for equity exchange whereby our lenders will exchange approximately two thirds of the company's outstanding debt for an 85% equity stake in the company."
Continuing, he outlined some of the details, writing "The exchange will require a filing with the FCC which will later this week to allow GOLDMAN and our lender group to receive the equity and join our Board of Directors. To facilitate this transaction and as a result of certain FCC rules surrounding "grandfathered" ownership concentration issues in our CONCORD-LAKES and PORTLAND markets, the Company will be required to divest of three radio stations, WWHQ and WNNH in CONCORD-LAKES and WHXR in PORTLAND (WHXR is a simulcast station only, WHXQ THE BONE remains in the Company). These three stations will be moved into a divestiture trust upon approval by the FCC of the entire transaction. In addition, as a result of some attributable interests of some of our Lenders in other radio companies and other considerations, our stations in CAPE COD and BOSTON, MA will be moved into separate companies. However, NASSAU will continue to operate these stations."