Nexstar Broadcasting to Receive Fees and Incentive Payments Totaling $6.7 Million Related to Sale of Four Points Media Group
January 04 2012 - 3:53PM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today
that it has received a payment of $6.7 million comprised of
management and incentive fees earned for 2011 as well as a
termination payment, related to the sale of Four Points Media Group
LLC (“Four Points”), by an affiliate of Cerberus Capital
Management, L.P. (“Cerberus”), to Sinclair Broadcast Group, Inc.
(“Sinclair”) (Nasdaq: SBGI). Approximately $4.7 million of the
payment will be recognized in Nexstar’s fourth quarter ended
December 31, 2011 and the balance of approximately $2.0 will be
recognized in the first quarter of 2012 (ending March 31). Nexstar
will use the payment made by Cerberus under the management services
agreement for debt reduction and general corporate purposes. The
management services agreement with Four Points terminated effective
with the closing of the sale of its stations to Sinclair on January
3, 2012.
Nexstar Broadcasting Group Chairman, President and Chief
Executive Officer, Perry A. Sook commented, “The Four Points
transaction is the culmination of our efforts on behalf of Cerberus
to improve the market position and operating efficiencies of these
stations and create value for the group. We are confident that
under Sinclair’s management, the markets, viewers and advertisers
served by these stations will benefit from a continued focus on
quality programming and community service. We believe the positive
outcome from this transaction for Cerberus, Four Points and
Sinclair positions us well to enter into other management services
agreements.”
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, e-MEDIA,
digital and mobile media platforms. Nexstar owns, operates,
programs or provides sales and other services to 55 television
stations and 11 related digital multicast signals reaching 32
markets or approximately 9.3% of all U.S. television households.
Nexstar’s portfolio includes affiliates of NBC, CBS, ABC, FOX,
MyNetworkTV, The CW, and Bounce TV, the nation’s first over-the-air
broadcast television network programmed for African-American
audiences and three independent stations. Nexstar’s 31 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.
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.
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