The transaction between Emmis and Grupo Radio Centro has come to fruition - price tag is $85.5 million. (I had seen $88.5 million in another report.)
From the news page here on RadioInfo:
HUGE DEAL. Emmis Communications Sells KXOS, Los Angeles to Grupo Radio Central. In a major radio transaction, Grupo Radio Centro (GRC) announced yesterday that it has completed its buy of Spanish CHR KXOS-FM, Los Angeles for a reported price of $85.5 million. GRC missed the original deadline of August 8 after which the price tag would be raised to $110 million – but as it turns out the original figure remained intact as KXOS has been acquired by a newly-formed entity, 93.9 Holdings Inc., pursuant to the Put and Call Agreement entered into with Emmis in April, 2009, which was amended in April of this year to reduce the purchase price to $85.5 million. The acquiring entity, 93.9 Holdings, Inc., is controlled by 93.9 Investment, LLC, which is wholly owned by certain members of the Aguirre family who are U.S. citizens. GRC’s wholly-owned subsidiary, Grupo Radio Centro LA, LLC (GRC-LA), owns a 25% equity stake in 93.9 Holdings and GRC-LA and 93.9 Investment. Under a shareholders agreement, GRC-LA will have certain customary minority shareholder rights, including those relating to corporate transactions, and has a call option to acquire, subject to compliance with the rules and regulations of the FCC. In order to finance the acquisition, 93.9 Holdings, Inc. entered into a US$90 million senior secured credit facility guaranteed by GRC and certain of its operating subsidiaries with a group of lenders for which Credit Suisse Securities (USA) LLC acted as the lead arranger. The credit facility provides for a term loan in two tranches, one of which has a five-year term and the other of which has a seven-year term.
From the news page here on RadioInfo:
HUGE DEAL. Emmis Communications Sells KXOS, Los Angeles to Grupo Radio Central. In a major radio transaction, Grupo Radio Centro (GRC) announced yesterday that it has completed its buy of Spanish CHR KXOS-FM, Los Angeles for a reported price of $85.5 million. GRC missed the original deadline of August 8 after which the price tag would be raised to $110 million – but as it turns out the original figure remained intact as KXOS has been acquired by a newly-formed entity, 93.9 Holdings Inc., pursuant to the Put and Call Agreement entered into with Emmis in April, 2009, which was amended in April of this year to reduce the purchase price to $85.5 million. The acquiring entity, 93.9 Holdings, Inc., is controlled by 93.9 Investment, LLC, which is wholly owned by certain members of the Aguirre family who are U.S. citizens. GRC’s wholly-owned subsidiary, Grupo Radio Centro LA, LLC (GRC-LA), owns a 25% equity stake in 93.9 Holdings and GRC-LA and 93.9 Investment. Under a shareholders agreement, GRC-LA will have certain customary minority shareholder rights, including those relating to corporate transactions, and has a call option to acquire, subject to compliance with the rules and regulations of the FCC. In order to finance the acquisition, 93.9 Holdings, Inc. entered into a US$90 million senior secured credit facility guaranteed by GRC and certain of its operating subsidiaries with a group of lenders for which Credit Suisse Securities (USA) LLC acted as the lead arranger. The credit facility provides for a term loan in two tranches, one of which has a five-year term and the other of which has a seven-year term.