There is more than meets the eye to the $1.25M sale of an exurban AM station south of Dallas-Fort Worth that commands less than a kilowatt of power. The deal, which involves all of the stock of licensee Faye and Richard Tuck Inc., has a real estate component that comprises over 40% of the total value.
The station is a Class B playing Classic Country on 1390 kHz with 480 w-D, 260 W-N, DA2. It’s local orientation is definitely tied to the limitations of the signal. The secondary daytime contour makes it as far as Fort Worth, but does not reach Dallas.
There are three individuals selling stock – 45% of the corporation is coming from Jeanne Tuck Moseley and another 45% is coming from Sandra Tuck Howell. The final 10% is being sold by Kenneth Hays Roberts. James R. Phillips will have a slight majority share of 51% over the 49% share being acquired by Ann E. Phillips.
The compensation package breaks down like this: $714K is allocated to the stock of the company, and $536K is allocated to real estate, which includes two separate tracts.
There will be a $294K cash payment, and another $706K is coming from a 3rd party lender. The final component is a note for $202,257.10. Those of you with calculators or mathematically-wired brains have already noticed that these three figures do not add up to $1.25M. Jim Phillips told RBR-TVBR that the difference is in the interest value attached to the note. Add that in and the $1.25M will eventually be achieved.
Just to make sure full value gets to the sellers, Mr. Phillips is required to carry life insurance to the value of the note until it’s paid off in full.