Rumors have been swirling among media brokers that there would be at least one final deal of note before the end of 2016.
Is a three-station deal in South Dakota that transaction, given the impressive price being paid for one AM and two FMs in an unrated market?
According to an asset sale agreement filed with the Commission on Thursday (12/29), Riverfront Broadcasting is selling Class C KORN-AM, with 1kw from 1 tower; Class C1 Country KORN-FM; and Class C1 CHR/Pop KQRN-FM “Q107.3” in the Mitchell, S.D., market to Nedved Media LLC.
The purchase price: $3.35 million.
Terms of the agreement call for Nedved to pay $150,000 for real property, $28,000 for buildings, $500,000 for the all-important equipment, and $2,662,000 for “goodwill” and the station licenses. Additionally, a $10,000 non-compete covenant is being paid to Riverfront.
A $100,000 deposit is due to Riverfront by Nedved by Monday, Jan. 2.
The balance is due at closing, and of the funds owed by Nedved, $750,000 will be tied to a promissory note; Nedved’s principals, Nancy Nedved and Steve Nedved, are procuring term life insurance with a death benefit of $750,000 each and assigning it to Riverfront as collateral.
To assist Nedved with financing, Riverfront and its individual members also agree to guaranty a total of $250,000 of Nedved’s debt with First Dakota National Bank until the promissory note is paid or five years from the closing, whichever occurs first. In exchange for this guaranty, Nedved will pay Riverfront a fee of $300 per month until the guaranty is fully and finally released by the bank.
Closing is expected on or about April 3, 2017.
Meanwhile, Nedved is assuming control of the three stations via a programming agreement, effective Sunday (1/1).
Riverfront is headed by Doyle and Carolyn Becker, and owns nine stations in Iowa, five stations in South Dakota, and one station in both Illinois and Nebraska.
In an announcement appearing on the KORN-AM website, Nancy Medved noted, “Nedved Media’s vision is to make a difference for our listeners, clients and the communities we serve. Our stations remain committed to immediate and thorough coverage of news, weather, sports and local events, plus customized advertising campaigns designed to help each client’s business whether it is for gaining market position, growth, or recruiting the right staff.”
Riverfront Broadcasting acquired the three stations nine years ago.
Mitchell, S.D., is home to the Mitchell Corn Palace, and a noted prehistoric Indian village.
