The station trading environment in the stratus below the radar screen of the financial community breeds great deal-making creativity, and the construction of a small station group in Ohio is one such project.
The immediate move is the sale of WBIK-FM Pleasant City OH. It’s a Class A on 92.1 MHz with 6 kW @ 169’.
The seller is David L. Wilson.
The buyer is AVC Communications Inc., headed by President Joel Losego.
The price is $246,650. It will be funded entirely via seller paper. It’s a 15 year promissory note carrying 3.5% annual interest, with a monthly payment of $1,763.25.
People on the ground in Pleasant City likely won’t notice that anything is any different. AVC is already running WBIK-FM in a long-term SMA, or Sales and Marketing Agreement, that dates all the way back to 8/1/02.
The buyer owns and operates WILE-AM Cambridge OH, WILE-FM Byesville OH and WCMJ-FM Cambridge OH.
In addition, AVC has a JSA with W. Grant Hafley’s WBNV-FM Barnesville OH and WWKC-FM Caldwell OH. The two companies share income from the stations on a 50/50 basis. AVC has a pending deal to acquire the two stations for $1,136,398.55. The compensation package is also 100% promissory note. AVC will make 180 monthly payments over the course of 15 years, incorporating a 3.5% interest rate, with $8,123.91 due each month.
WBNV-FM is located to the east of the other stations and overlaps none of them. WWKC-FM is south of the main cluster with only tangential overlap.
The stations are located in unrated territory on the I-70 corridor about halfway between Wheeling WV to the east and Columbus OH to the west.
