Nasdaq attack: SBS notified, Radio One tinkers


RBR/TVBR observation 08/18/08 RBR #161: Who else is in danger of delisting? The last time SBS closed at or above $1.00 was June 30th, so it has already tripped the 30 trading days and should not be surprised to receive a similar letter. Citadel had a close above a buck on August 11th, so it has a time cushion to get back up there before 30 trading days pass. The clock has been ticking for Radio One (Class D) since August 5th. Westwood One has managed to stay just above a buck of late.

Well here we go: Spanish Broadcasting System is going down the same Nasdaq road just blazed by Regent Communications – the one marked deficiency notice, which could end at an exit sign if the company cannot get its common stock over the $1 mark for ten consecutive days at some point within the next 180. Its target date for compliance is 2/17/09 – coincidentally the deadline for the DTV transition.

Meanwhile, Radio One has asked Nasdaq to move its Class A shares from The NASDAQ Global Market to The NASDAQ Capital Market. This amounts to more of a tweak than anything else, since Radio One’s voting power reside in the Class B stock of founder Cathy Hughes and her son Al Liggins, and the trading is done in mainly in vote-free Class D stock. Meanwhile, Standard and Poor’s took Radio One off negative watch and put them on negative outlook. S&P said, “The negative outlook reflects vulnerability to radio segment secular weakness, which could again jeopardize covenant compliance…the affirmation reflects Radio One’s increased headroom against financial covenants after the sale of its Los Angeles radio station and a subsequent debt repayment of around $69M.”