The judge overseeing Audacy Inc.‘s Chapter 11 restructuring case in a Houston federal bankruptcy court is expected to give his approval to a pair of asset sales that don’t involve any of its AM or FM radio stations. Rather, the deals involve real property in Boston, with one of the buyers a major multinational tower owner.
Twin emergency orders filed with the court are moving ahead.
The first involves the “Audacy Atlas” LLC created to house assets deemed non-essential to the company helmed by President/CEO David Field and “ATS-Needham LLC.”
A sale hearing has been scheduled for February 20 at 2:30pm Central. It could simply be a formality, however, with Judge Christopher López the ultimate arbiter in approving this land sale. Doing so will bring $3.5 million to Audacy, as it sheds a parcel currently home to three radio station towers associated with WEEI-AM 850 and located in the upscale, leafy suburb of Needham, Mass.
To be clear, the land sale is not a result of the bankruptcy filing. Rather, Audacy since late
2022 has engaged in “an extensive marketing process” in an attempt to locate a
potential buyer for all or a portion of the property. Audacy believes, with the easement that ATS-Needham is prepared to grant, can be sold for the benefit of the company without any business impact.
Audacy deemed the offer in its best interest, as no construction or re-zoning is required.
That’s because “ATS-Needham LLC” is a unit of American Tower Corp., one of the biggest broadcast tower owners in the world.
The second land sale involves an entity known officially as “83 Leo Property Owner LLC.”
And, like the American Tower deal, will be considered at the February 20 hearing in front of Judge López.
From “83 Leo” is a payment of more than $11.1 million at closing, and an additional payment of up to $7 million, depending on the property value when such payment is due to Audacy.
Audacy will enter into a two-year leaseback arrangement, allowing it to continue operations on this property. The 83 Leo M. Birmingham Parkway facility in Brighton, Mass., is home to Audacy’s Boston stations.
Closing of the 83 Leo deal is expected to occur on March 6.
Once that transpires, Audacy will pay base rent of $40,000 per month with annual increases of 3% for two years.
This is a triple net lease pursuant to which Audacy Massachusetts shall pay insurance costs, utility charges, personal property taxes, real estate taxes and operating costs.
To help pay for the property, an Intercreditor Agreement will be put into place, in which “83 Leo” will borrow $6.5 million from a financial institution and may obtain other senior loans up to $11 million. Audacy Atlas will hold a junior priority mortgage interest on the property.
