Jerrold Lundquist’s Chaparral Broadcasting already operates in and around the southeast corner of Idaho, and the company has a deal to add three more stations in the Eastlan-rated Idaho Falls-Pocatello-Blackfoot market.
The stations are KRXK-AM/KGTM-FM Rexburg ID and KBJX-FM Shelley ID. The seller is Pacific Empire Radio Corporation, headed by John I. Taylor.
Chaparral will pay $1.5M in a heavily back-ended payment scheme. $10K is going into escrow, another $40K will be paid at closing, and the remainder will be paid over a seven year period pursuant to what the contract refers to as a Purchase Money Note valued at $1.4M.
In addition to the trio of stations, Chaparral has a right of first refusal to acquire KESI-AM/KMGI-FM Pocatello should a prior agreement to sell fail to go through and a third party makes an offer for the combo. We could find no deal on record for the Pocatello stations in the FCC database.
Chaparral has two stations which overlap some of those coming in the PERC deal – KEZQ-FM West Yellowstone MT (both the currently licenses version and the version that will exist after a CP is acted on) and KWYS-FM Island Park ID.
A TBA for the PERC trio went into effect 7/1/10. It calls for a rental payment of only $1 per month through the end of 2010, but that will go up beginning in January 2011 to $7,995 monthly until the deal closes.
RBR-TVBR note: If you read this article, chances are you have more than a casual interest in the buying and selling of media properties. Much of what goes into a deal goes into the contract, and knowing what kinds of things should go into the contract can help you make a better deal. RBR-TVBR has just the book for you: a guide to deal-craft that will pay for itself.
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