Townsquare Media
acquires Presque Isle radio station
By Kathy McCarty
Staff Writer
Officials with Cumulus Media Inc., headquartered in Atlanta, have announced the sale of 55 stations including several in Presque Isle to Grenwich, Conn.-based Townsquare Media in exchange for the acquisition of 10 radio stations in two markets plus $116 million in cash.
The transaction is part of Cumulus’s ongoing plan to focus on radio stations in top markets and geographically strategic regional clusters.
“This transaction represents strategic portfolio management which enables us to focus on accretive large market consolidation as well as further de-leveraging of our balance sheet,” said Lew Dickey, CEO of Cumulus.
As part of the transaction, Cumulus is acquiring 10 stations in Bloomington, Ill., and Peoria, Ill.
The stations being sold by Cumulus to Townsquare are located in the following markets: Augusta, Bangor and Presque Isle; as well as Binghamton, N.Y.; Bismarck, N.D.; Grand Junction, Colo.; New Bedford, Mass.; Sioux Falls, S.D.; Tuscaloosa, Ala.; and two stations in Texas, Killeen-Temple and Odessa-Midland.
Presque Isle stations include: WOZI-FM 101.9, WBPW-FM 96.9 and WQHR-FM 96.1.
UBS Investment Bank acted as financial advisor and Jones Day acted as legal advisor to Cumulus in connection with the transaction.
Officials with Townsquare executed definitive documentation related to the asset exchange with Cumulus on April 30, whereby Townsquare will acquire 55 stations in 11 markets in exchange for the 10 Cumulus properties. Upon the closing of the asset exchange, and Townsquare Media’s pending station sale in Texas, the company will own 244 stations in 551 small- and mid-sized markets.
“This transaction represents a continued investment in the local media business in small- and mid-sized markets,” commented Townsquare Media Chairman and CEO Steven Price.
“We are excited to continue to add premier assets to our portfolio. The strength and depth of the acquired assets represent an excellent addition to Townsquare Media and we are excited to add new advertising partners and to broaden our audience reach,” said Price.
The transaction is expected to close in the second half of 2012, pending regulatory approval.
McDermott Will & Emery LLP acted as legal counsel to Townsquare Media in connection with the transaction.
When asked about the sale and how it would impact the Presque Isle stations, local management had no comment.
