Three FM stations serving Missoula are headed to a new owner under less than ideal conditions. The owner simply was unable to keep up with its debt repayment schedule.
The stations all provide excellent coverage of the market, which is rated by Eastlan.
The seller is Spanish Peaks Broadcasting Inc., headed by Kevin Terry.
The buyer is Missoula Broadcasting Company LLC, a subsidiary of Simmons Media Ventures, headed by David E. Simmons, G. Craig Hanson and Alan Hanson.
The terms are not pretty. Simmons principals are also principals of First Interstate Bank, which held a promissory note from SPB valued at $2,525,000. As of 11/14/14, SPB is in default and still owes $2,423,477.66. The two parties have agreed that the fair market value of the stations and associated assets is $1.2M. Simmons will take over the stations and reduce SPB’s liability to the same $1.2M.
Simmons will also begin operating the stations in a TBA. The TBA carries a nominal monthly rental fee of $1. Simmons will pay all reasonable operating and maintenance expenses.
Here the details on the stations:
* KDTR-FM Florence MT is a Class C2 on 103.3 MHz with 1.84 kW @ 2,083’
* KKVU-FM Stevensville MT is a Class C1 on 104.5 MHz with 12.5 kW @ 2,083
* KYJK-FM Missoula MT is a Class C2 on 105.9 MHz with 1.84 kW @ 2,083
