Nexstar Broadcasting Enters into Definitive Agreement to Sell CBS Affiliate in Evansville, Indiana to Bayou City Broadcasting...
August 04 2014 - 6:20PM
Business Wire
Sale Brings Nexstar’s Communications
Corporation of America Station Purchases into Compliance with DOJ
Criteria
Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) (“Nexstar”)
announced today that it has entered into a definitive agreement
Bayou City Broadcasting Evansville, Inc. (“BCBE”) for the sale of
WEVV, the CBS affiliate in Evansville, Indiana for $18.6 million.
BCBE is a minority led broadcaster owned by affiliates of Sankaty
Advisors, LLC, Alta Communications and Bayou City Broadcasting,
LLC. Bayou City Broadcasting, LLC (“BCB”) is owned by DuJuan McCoy,
who will serve as BCBE’s president and chief executive officer.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar, commented, “The proposed transaction announced today
highlights our focus on completing pending transactions and
represents the second time in the last two months that Nexstar has
structured an agreement that furthers the FCC’s goal of increasing
minority television ownership diversity.”
Mr. McCoy founded BCB in December 2007 and in January 2008
agreed to purchase seven television stations located in Abilene and
San Angelo, Texas. With this purchase, Mr. McCoy and BCB became the
only African American company to own and/or operate a Fox Affiliate
in the United States and the first African American to own and
operate a network affiliated station in Texas. For over two
decades, the Federal Communications Commission (“FCC”) has advanced
proposals for the incubation of broadcast station ownership by
disadvantaged businesses, including minority-owned companies. FCC
data indicates that African-American ownership of television
stations is exceptionally low, with African-Americans controlling
only 0.7% of all television broadcast stations. Last month Nexstar
announced plans to sell three full-powered, FOX affiliated stations
in Shreveport, LA, Odessa-Midland, TX and Quad Cities, IA, to
Marshall Broadcasting Group, Inc. (“MBG”) a newly formed minority
owned media entity owned by Pluria Marshall Jr.
“Nexstar is taking an industry leading role in significantly
expanding the diversity of media ownership assets among minority
operators and addressing recent proposed FCC regulation changes,”
said DuJuan McCoy. “I am delighted we have been able to structure
an agreement for BCBE’s purchase of the Evansville CBS affiliate
and would welcome other opportunities to work further with Nexstar
or other broadcasters who are committed to supporting minority
broadcasters as FCC licensees and owners and operators of
television stations.”
Nexstar’s recently announced station divestitures are subject to
Federal Communications Commission approval, the consummation of
Nexstar’s previously announced agreements to acquire the stock of
privately-held Communications Corporation of America (“CCA”), and
other customary closing conditions, and Nexstar expects to complete
all announced pending transactions in 2014. The sale of WEVV to BCB
brings the overall CCA transaction into compliance with Department
of Justice requirements for approval and will release the pending
transaction from hold pending divestiture.
Kalil & Co., Inc. acted as the exclusive broker for the
seller in this transaction.
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 20
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, LATV and an
independent station. Nexstar’s 48 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 107 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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