A renter is becoming an owner in the Pueblo CO market – and seller paper is a large part of the paper trail when this deal is taken apart. It will add to the buyer’s collection of Colorado stations, including one serving the same market.
The stations are KWRP-AM and KIQN-FM, both licensed to Pueblo. They are being sold by Exodus Broadcasting LLC. The buyer, W. Philip Robinson’s United States CP LLC, has been operating the combo in an LMA since 1/1/10.
There is no purchase price that can be quoted. Rather, USC will pick up payments on a loan the seller owes to Mark Acker’s Metropolitan Radio Group (which is no longer an active radio operation). Additionally, USC will pay the seller a dime on every dollar of profit after it has cleared the capital plus 8% level. The seller has the right to examine the books annually to determine profit or loss levels.
Exodus, who counted Martin Bechina among its investors, originally bought the combo from Metropolitan in a March 2009 deal. The price was $500K, and included a $200K note in the payment package. Later, on 1/19/10, Nick Knezevich bought 75% of the company, getting stock from Bechina and sending other smaller investors out the door in exchange for forgiveness of unspecified obligations to Knezevich. The compensation paid by Knezevich was all pursuant to another promissory note, this one for $318,750.
The terms of the LMA had USC paying a scant one dollar a month. However, it also covered reasonable expenses.
USC’s other station serving the market is KRYE-FM currently licensed to Rye CO, a town southwest of Pueblo, and holding a CP to move to Olney Springs CO, a town to the east of Pueblo. USC also has several other licenses in Colorado and an FM in Lynchburg VA.