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Mapleton shuffles ownership structure

D

djj

From All Access dot com News, 7/16/09:
A group of MAPLETON COMMUNICATIONS' investors is buying 40,000 senior subordinated preferred units of the company for a capital contribution of 4 million dollars.

Under the deal, CORPORATE PARTNERS two AIC-LP, which will take over as controlling member from MAPLETON INVESTMENTS, will end up with 99 point 6624 percent voting interest in MAPLETON RADIO, LLC, parent of MAPLETON COMMUNICATIONS, which owns clusters in SPOKANE, MONTEREY, MERCED, CA, MEDFORD, OR and REDDING, CA.

Sounds like they needed some cash to keep themselves going...
Thoughts?
--jay
 
djj said:
From All Access dot com News, 7/16/09:
A group of MAPLETON COMMUNICATIONS' investors is buying 40,000 senior subordinated preferred units of the company for a capital contribution of 4 million dollars.

Under the deal, CORPORATE PARTNERS two AIC-LP, which will take over as controlling member from MAPLETON INVESTMENTS, will end up with 99 point 6624 percent voting interest in MAPLETON RADIO, LLC, parent of MAPLETON COMMUNICATIONS, which owns clusters in SPOKANE, MONTEREY, MERCED, CA, MEDFORD, OR and REDDING, CA.

Sounds like they needed some cash to keep themselves going...
Thoughts?
--jay
Click to expand...
Perhaps the Nathansons cashed out. Corporate Partners had a 30% stake in the company, but it looks like they now own almost all of the company. Does anyone know if there will be any changes in corporate management?
 
DanielBoone said:
Uh oh! I really hope this does not have any effect on 97.5 KABX, which is owned by Mapleton. :eek:
Click to expand...


I hope not either, they are better than the other Oldies/Classic Hits station KHIT 107.1, more 60s ,actually has a larger playlist too and Casey Kasem AT40 retro 70s show on sundays.
 
Interesting...this is the third small group I've read about today that has lost control of its stations because of debt. And everyone is so focused on the big ones. But these smaller companies are really struggling.
 
Hunter said:
Perhaps the Nathansons cashed out. Corporate Partners had a 30% stake in the company, but it looks like they now own almost all of the company. Does anyone know if there will be any changes in corporate management?
Click to expand...

So this sounds to me like the entire company - all of the properties - is worth $6M or so in the eyes of those involved in this transaction. That's quite a drop.

Dave B.
 
DaveBayArea said:
So this sounds to me like the entire company - all of the properties - is worth $6M or so in the eyes of those involved in this transaction. That's quite a drop.
Click to expand...

"Worth" is a relative term. They didn't buy the group. They bought 99.6% outstanding stock for $6 million. They don't own the stations or the property. They own control of the company that owns the station. Two different things. I don't think they even have to apply to the FCC for change of ownership. This is a debt for equity exchange. Watch for more of this in the next six months.
 
TheBigA said:
Interesting...this is the third small group I've read about today that has lost control of its stations because of debt. And everyone is so focused on the big ones. But these smaller companies are really struggling.
Click to expand...

Companies of whatever size are struggling if they're overleveraged, i.e. loaded up with debt. Those that aren't are at least surviving, and in some cases actually prospering. It's the guys who borrowed to the hilt to buy at asset-bubble prices that are losing their shirts, in large markets and small. The small ones are going first only because it's easier for a lender to take a smaller haircut than a large one.
 
flakunkel said:
The small ones are going first only because it's easier for a lender to take a smaller haircut than a large one.
Click to expand...

This doesn't seem to be that kind of situation. In this case, the investment group spent money to buy controlling interest. You don't spend money in this market in order to lose it. There were other approaches they could have taken.
 
TheBigA said:
DaveBayArea said:
So this sounds to me like the entire company - all of the properties - is worth $6M or so in the eyes of those involved in this transaction. That's quite a drop.
Click to expand...

"Worth" is a relative term. They didn't buy the group. They bought 99.6% outstanding stock for $6 million. They don't own the stations or the property. They own control of the company that owns the station. Two different things. I don't think they even have to apply to the FCC for change of ownership. This is a debt for equity exchange. Watch for more of this in the next six months.
Click to expand...
In todays Daily Digest, the FCC notes applications for Transfer of Control from Mapleton to Corporate Partners: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-292064A1.pdf

The question is now that CP controls the stations, will Mapleton continue to be involved in operating the stations?
 
Hunter said:
The question is now that CP controls the stations, will Mapleton continue to be involved in operating the stations?
Click to expand...

Depends on what you mean by "Mapleton."

The application says "Voluntary Transfer of Control." Wonder how voluntary it really was.
 
AIC - LP will keep Nathanson as CEO, as well as some higher ups.  The lender doesn't run radio stations, neither do the "majority" partners. 

As a condition of  keeping the 41 station group intact and operating, the investor bank (Lazard) which put in $10 million for the $17.5 million Chico - Redding cluster in 2006, insisted that Nathanson stays on board along with upper management.  The investors control the bottom line, while management formulates the day-to-day operation until the creditors are cashed out, other terms are named (not likely at this time,) or other "changes" in the size and/or scope of the group are forthcoming. (Not expansion, likely.)

Similar to "holding management's feet to the fire" as day to day operators and as collateral, pending any "unspecified" changes in direction of the group. After all, Nathanson put the group together. Let him be responsible, still, for running it until which time Lazard either is satisfield with the terms or makes changes. Also, don't forget that Mapleton owns a cluster in SLO County and in North Santa Barbara County as well. Second tier stations, outside of KPYG. 
 
It appears Marc is bailing out. Basically the company (which, by the way "owns" the stations) is 66% owned by Marc and 33% by Corporate Partners is going to be owned by Corporate Partners. A transfer of ownership IS required by the FCC with the transfer of majority control. Owning the company means owning the stations.
 
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