UBS To Invest $125 Million In Merged Cumulus/Citadel
April 26, 2011 at 8:14 AM (PT)
UBS spokesperson MICHELLE LEE has confirmed to ALL ACCESS that the company has made a $125 million investment in the combined CUMULUS/CITADEL entity.
Last month (NET NEWS 3/10), CUMULUS MEDIA made it official, announcing that it entered into a definitive merger agreement to purchase CITADEL BROADCASTING CORP. The deal will give CITADEL shareholders the right to receive a choice of $37 in cash or 8.525 shares of CUMULUS common stock for each share of CITADEL stock. Based on the $37 price, the deal values CITADEL at approximately $2.4 billion. CUMULUS will acquire 225 radio stations in over 50 markets and syndicator CITADEL MEDIA in the transaction, giving the combined operation 572 radio stations across approximately 120 U.S. markets.
When the deal was announced, CUMULUS said it expected to refinance all of the outstanding debt of CUMULUS MEDIA, CUMULUS MEDIA PARTNERS (which it is in the process of acquiring the remaining equity interests it does not already own), and CITADEL as part of the deal, and has obtained commitments for up to $500 million in equity financing from CRESTVIEW PARTNERS and MACQUARIE CAPITAL, and up to $3.025 billion in debt financing.
CRESTVIEW PARTNERS will keep its previously announced $250 million investment in the merged company, but MACQUARIE CAPITAL will cut its investment in half, to allow for UBS' entry into the mix.