From the heart of Colorado Springs comes a radio station with a booming Class D signal that stretches to the New Mexico border in the south all the way to the Wyoming border in the north.
It also boasts a valuable FM translator that puts a signal right over its primary market.
The facilities have just been sold, which may ask some locals if the “Blazin'” programming currently heard will be torched by the new owner. Nope.
In a transaction with a total value of $350,000, KCBR-AM 1040 and FM Translator K239CH at 95.7 MHz in Colorado Springs, Colo., are being traded to SGMK Communications from United States CP LLC.
SGMK is led by Michael Knar, and in late February made a $2,500 deposit to the seller.
Then, a $22,500 second deposit was made to the the seller by March 31.
Terms call for anther $25,000 cash payment, at closing, and the assumption of a $300,000 “seller note” that sees a $50,000 personal guarantee from Knar due 18 months after closing. Contingent on an “upgrade,” an additional $100,000 will be added to the note. Then, contingent on a second upgrade, an additional $200,000 will be tacked on to the note. The note is due in five years with a rate of prime plus 2%.
The deal also includes a warrant giving United States CP the right for an 11-year period to acquire 10% equity and voting interest in SGMK at a price of $25,000 and an additional 10% equity and voting interest at $50,000 — an interesting twist.
Knar is responsible with negotiating a new KCBR tower lease with owner Vic Michael.
There is no broker involved in this deal.
The seller is led by Todd Robinson.
KCBR and the translator air a classic hip-hop format as “Blazin’ 98.5.” It’s been on the air since May 2016.
Knar began operating the facilities under a Time Brokerage Agreement on May 1, but the operation isn’t changing — Blazin’ is a SGM Enterprises operation, and this puts to end any fear of a change in programming will happen in the immediate future.