The Lincoln Financial Group is pulling out of the radio business, and Entercom will expand its holdings as a result in a blockbuster deal featuring 15 stations in four large markets.
The stations are in Atlanta, Denver, Miami and San Diego.
The price: $105,000,000 plus working capital. $77.5M of that total will be in the form of cash, which Entercom will amass via its existing $50M revolver, cash on hand and if need be, via other sources.
LFM will continue to have an interest in the stations’ performance as well. It will get $27.5M in “…new perpetual cumulative convertible preferred stock.”
Entercom will operate the stations in an LMA until closing, which is expected to close during Q2 next year.
Entercom President and CEO David J. Field stated: “We are excited to announce the acquisition of Lincoln Financial Media and welcome the addition of their outstanding brands and talented broadcasters to Entercom. LFM is a great organization that has done an excellent job serving its listeners, customers and communities over many years and we look forward to building on that tradition. LFM is a perfect fit for us as it bolsters our position in Denver and expands our footprint into Atlanta, Miami and San Diego with terrific brands that have significant growth potential. Furthermore, it fulfills our disciplined acquisition criteria as it enhances our company’s competitive position and growth and should be accretive to shareholders in 2015 while having a minimal impact on leverage.”
“We are pleased to reach an agreement with Entercom Communications to sell Lincoln Financial Media,” added Dennis R. Glass, president and CEO of Lincoln Financial Group. “Not only will this transaction allow Lincoln Financial Media to align itself with a well-respected media organization, but it also enables Lincoln Financial Group to focus on its strategy to grow its core lines of business.”
There are ownership cap implications in Denver, where Entercom already owns an AM and three FM and will be picking up two AMs and three FMs. That puts it one FM over the eight-station, five-in-a-service cap, and it plans to divest one of them.
The other three markets represent new territory for Entercom, which will have 130 station in 26 markets once everything closes.
Here are the stations coming in the deal, along with a listing of Entercom’s existing Denver holdings.
Atlanta
WSTR-FM Hot AC
WQXI-AM Sports
Denver
KEPN-AM Sports
KYGO-FM Country
KKFN-FM Sports
KQKS-FM Rhythmic CHR
KRQZ-AM Oldies
FM translator Comedy
Entercom’s Denver stations:
KALC-FM Hot AC
KEZW-AM Standards
KOSI-FM AC
KQMT-FM Adult Rock
Miami
WAXY AM-FM Sports
WLYF-FM AC
WMXJ-FM Classic Hits
San Diego
KBZT-FM Alternative
KSON-FM.KSOQ-FM Country
KIFM-FM AC
