Grupo Radio Centro failed to close on its LMA/option with Emmis Communications for KXOS-FM Los Angeles by the original 8/8/12 deadline to benefit from a discounted price, but thanks to a mutually-agreed-upon extension, the station has changed hands with the bargain price intact.
The deal for the station, which is being bought by American proxies for Mexican GRC, was originally priced at $110M. Emmis agreed to sell it for $85.5M if it closed by the aforementioned 8/8/12 deadline, but GRC was unable to make that cut.
However, according to an Emmis SEC filing, the two parties agreed to extend the deadline to 8/23/12 – today as we write this – and the deal has been closed.
GRC said the buyer, listed officially as 93.9 Holdings Inc., it acquired a $90M senior secured credit facility guaranteed by GRC and with Credit Suisse Securities (USA) LLC acted as the lead arranger.
The closing terminates the LMA between the two companies, of course. GRC will start up a new one under which it will supply programming for the station to the benefit of 93.9 Holdings. The new LMA will mirror terms of the prior LMA with Emmis, except that GRC’s LMA payments will be equal to 93.9 Holdings’ debt service obligations.
For Emmis’ part, it said about $1.9M of the cash received for the station went to transaction and tax expenses, and $4M will be retained as working capital. The remaining $79.6M is going right into debt retirement.
RBR-TVBR observation: Los Angeles…Terre Haute…hmmmm…Although the timing of the finalized $85.5M KXOS Los Angeles deal coincides with jigsaw puzzle precision with the announcement of the $335K expansion of Emmis radio holdings in the Terre Haute market, we believe there is no truth to the rumors that Emmis originally began shopping the LA FM with an eye toward expanding its Hoosier State radio empire.
BTW, that was a joke…