Here’s a deal you won’t see every day – a company that is under the TLC of a trustee – Patrick Communications’ Larry Patrick as Trustee for the Border Media Business Trust – is actually in acquisition mode. The group is adding two Austin AMs to the three FMs it already has in the market.
Patrick is also the broker of record on the transaction.
The stations are KZNX-AM, licensed to Creedmoor TX, and KWNX-AM, licensed to Taylor TX. The seller is Simmons-Austin LLC, a subsidiary of David Simmons’ Simmons Media Group.
The price is $1.935M, and the terms of payment are unique. BMBT will put 90% of the proceeds it takes in from other dealings into an escrow account until sufficient funds are available to cover the price of the two Austin AMs. Patrick says the account is now about 65% full thanks to the earlier sale of KFON-AM Austin, and the imminent closing of the sale of KWOW-FM in the Waco market will seal the deal.
Both of the AMs are ESPN sports stations, with one key difference – KWNX delivers in Spanish, KZNX in English.
They will join the cluster formed by Talk KXBT-FM Leander TX, Sports KTXX-FM Dripping Springs TX and Oldies KXXS-FM Elgin TX.
But wait, there’s more!
The parties have applications to move KXXS-FM closer to Austin, changing its city of license from Elgin to Sunset Valley, a move which would be enabled by the simultaneous move of KWNX-AM from Taylor to Elgin. If that takes place prior to closing, $100K will be credited to the purchase price. Further, the parties will share the expense of making repairs to the AMs, with the buyer funding the first $50K, the seller the second $50K if needed, and with both parties splitting expenses 50-50 beyond that.
Patrick noted that Simmons and BMBT have common lenders, and that combining all of the implicated station assets under one roof made sense for all involved parties.
RBR-TVBR note: Now available RBR-TVBR’s ‘2010’ new guide to help chart a course through the treacherous waters of buying, owning and selling radio or television stations.
Click to purchase: “Profitably Buying and Selling Radio Stations,” or 1-800-288-4677, ext. 5022 for $49.95, paperback, $39.95, e-book.