Nexstar Broadcasting Completes Acquisition of Five Stations in Two Markets for $33.5 Million in Accretive Transaction
June 13 2014 - 4:05PM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) announced today
that it has completed the previously announced accretive
acquisition of five television stations in two markets for $33.5
million and an adjustment for working capital. The stations were
acquired from Gray Television Group, Inc. (NYSE:GTN and GTN.A)
(“Gray”) and represent the equity interests of certain subsidiaries
of Hoak Media, LLC ("Hoak").
City of License
Market Rank
Station Affiliation
1
Panama City, FL 154
WMBB ABC
2
Grand Junction, CO
185
KREX
CBS
3
Glenwood Springs, CO
KREG(1) CBS
4
Montrose, CO
KREY(1) CBS
5
Grand Junction, CO
KGJT MyNetworkTV
(1) KREG and KREY operate as satellite stations of KREX
Concurrent with the acquisition of the five stations, Nexstar
will assume Hoak’s contractual obligations with Parker Broadcasting
of Colorado, LLC ("Parker") for KFQX, the Grand Junction, Colorado
FOX affiliate, under the existing Time Brokerage Agreement (“TBA”),
whereby Nexstar will provide sales and other services to the
station. Under the terms of the amended agreement, Mission
Broadcasting, Inc. (“Mission”) will make a deposit to Parker in the
amount of $3.2 million with the deposit applied to the Purchase
Price upon closing, which is pending approval by the Federal
Communications Commission.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Broadcasting Group, Inc., commented, “This transaction
is consistent with our core strategy to diversify and expand our
local traditional media, digital and mobile media platforms through
transactions that are complementary to our existing operations
while also providing financial and operating synergies that enhance
free cash flow. This transaction marks our entrée into Grand
Junction and Panama City and we look forward to leveraging our
industry-wide leadership in delivering exceptional local and
network programming and service in our markets for the benefit of
viewers while creating an even stronger marketing platform for
local area businesses.”
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media
company that leverages localism to bring new services and value to
consumers and advertisers through its traditional media, digital
and mobile media platforms. Nexstar owns, operates, programs or
provides sales and other services to 80 television stations and 19
related digital multicast signals reaching 46 markets or
approximately 13.1% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV, Me-TV, Live Well and independent
stations. Nexstar’s 47 community portal websites offer additional
hyper-local content and verticals for consumers and advertisers,
allowing audiences to choose where, when and how they access
content while creating new revenue opportunities.
Pro-forma for the completion of all announced transactions
Nexstar will own, operate, program or provides sales and other
services to 108 television stations and related digital multicast
signals reaching 56 markets or approximately 16.0% of all U.S.
television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
Nexstar Broadcasting Group, Inc.Thomas E. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph Jaffoni, Jennifer
Neuman212-835-8500nxst@jcir.com
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