There will be no exchange of cash when the license for KRGX-FM is exchanged – but the seller will be relieved of a substantial amount of debt. The station operates out of Rio Grande City along the river of that name on the Texas border with Mexico.
The seller is licensee James Falcon.
The buyer is 95.1 Investments LLC, a company with a long list of shareholders, with Mary Gray signing of on this particular deal.
The contract makes not of a TBA/option with Dream Media Radio LLC that was dated 11/12/10. The acquisition portion of that arrangement did not come to fruition, and no transfer application has been accepted for filing by the FCC involving Falcon and DMR.
The current transaction is valued at $868.5K, all of it in debt forgiveness.
Falcon enjoyed the benefit of a 35% bidding credit when acquiring the CP for the station at FCC auction. The recipient of the station also qualifies for the 35% credit, so no unjust enrichment fees are associated with the transfer.
The station, which uses an Hispanic format and calls itself Ponte EXA 95.1, is a Class A on (you guessed it) 95.1 MHz with 6 kW @ 328’. It is located in unrated territory to the west of McAllen – the weakest portion of its contour just makes it there.