I got this info from the New England board, and thought it would be very relevant here in case you haven't seen it.
Nassau is very bad trouble, and now a suit from an investment firm will sit on the board of Nassau from here on out. This seems like the end of the line for Nassau, and because of this, I have been hearing rumors like crazy that some if not all of Nassaus Pa. properties are up for sale. Anyways, heres the internal Nassau memo, lets here your comments on this tragic situation..
***From:* Lou Mercatanti
***Sent:* Monday, April 27, 2009 4:44 PM
***To:* Lou Mercatanti
***Subject:* Memo from Lou Mercatanti
Date: April 27, 2009
To: All Nassau Employees
Re: Nassau's Capital Structure
From: Lou Mercatanti
As some of you may know, Nassau has been in recent negotiations regarding a
restructuring of its current credit facility with our Lender Goldman Sachs.
Our credit facility became due on September 30, 2008 and I, along with our
corporate team, have been working with our lenders to come up with a viable
plan to refinance or restructure the company's debt in the face of the
country's worst credit crisis and advertising markets in decades. I am
pleased to announce today that we have signed a formal restructuring
agreement whereby our lenders have agreed to a debt for equity exchange
whereby our lenders will exchange approximately two thirds of the company's
outstanding debt for an 85% equity stake in the company. This transaction
puts the Company on solid financial footing during these recessionary times
and will provide us with the financial strength to take advantage of an
improving economy in all of our markets. Goldman Sachs has been a
longstanding credit partner of the Company, is a highly respected and
creative financial institution and will serve the Company well as a new
equity partner in the years to come.
Now for a few further details. The exchange will require a filing with the
FCC which will later this week to allow Goldman and our lender group to
receive the equity and join our Board of Directors. To facilitate this
transaction and as a result of certain FCC rules surrounding "grandfathered"
ownership concentration issues in our Concord-Lakes and Portland markets,
the Company will be required to divest of three radio stations, WWHQ and
WNNH in Concord-Lakes and WHXR in Portland (WHXR is a simulcast station
only, WHXQ The Bone remains in the Company). These three stations will be
moved into a divestiture trust upon approval by the FCC of the entire
transaction. In addition, as a result of some attributable interests of
some of our Lenders in other radio companies and other considerations, our
stations in Cape Cod and Boston MA will be moved into separate companies.
However, Nassau will continue to operate these stations.
Most importantly, an important message I would like to convey to all is that
other than this positive development for our capital structure and the
future of our company referenced above, there are no other changes occurring
in connection with this transaction that will impact the operations of the
Company. I remain as your CEO and your existing management team is and will
be here to assist and guide all of you and the Company through these
interesting and challenging times and on to better times ahead for all.
Nassau, as has been the case numerous times before, is ahead of the curve
with our corporate restructuring. This year there will be substantial
changes to the capital structures and ownership profiles of many companies
in our industry due to the economic and credit environment, and I am pleased
that we now have a capital structure that allows us to get back to the
important work of providing unparalleled service to our listeners and
advertisers.
I would like to personally thank all of you for your hard work and
dedication and please feel free to contact me personally or any one of our
senior managers with any questions regarding this transaction.
Lou
Nassau is very bad trouble, and now a suit from an investment firm will sit on the board of Nassau from here on out. This seems like the end of the line for Nassau, and because of this, I have been hearing rumors like crazy that some if not all of Nassaus Pa. properties are up for sale. Anyways, heres the internal Nassau memo, lets here your comments on this tragic situation..
***From:* Lou Mercatanti
***Sent:* Monday, April 27, 2009 4:44 PM
***To:* Lou Mercatanti
***Subject:* Memo from Lou Mercatanti
Date: April 27, 2009
To: All Nassau Employees
Re: Nassau's Capital Structure
From: Lou Mercatanti
As some of you may know, Nassau has been in recent negotiations regarding a
restructuring of its current credit facility with our Lender Goldman Sachs.
Our credit facility became due on September 30, 2008 and I, along with our
corporate team, have been working with our lenders to come up with a viable
plan to refinance or restructure the company's debt in the face of the
country's worst credit crisis and advertising markets in decades. I am
pleased to announce today that we have signed a formal restructuring
agreement whereby our lenders have agreed to a debt for equity exchange
whereby our lenders will exchange approximately two thirds of the company's
outstanding debt for an 85% equity stake in the company. This transaction
puts the Company on solid financial footing during these recessionary times
and will provide us with the financial strength to take advantage of an
improving economy in all of our markets. Goldman Sachs has been a
longstanding credit partner of the Company, is a highly respected and
creative financial institution and will serve the Company well as a new
equity partner in the years to come.
Now for a few further details. The exchange will require a filing with the
FCC which will later this week to allow Goldman and our lender group to
receive the equity and join our Board of Directors. To facilitate this
transaction and as a result of certain FCC rules surrounding "grandfathered"
ownership concentration issues in our Concord-Lakes and Portland markets,
the Company will be required to divest of three radio stations, WWHQ and
WNNH in Concord-Lakes and WHXR in Portland (WHXR is a simulcast station
only, WHXQ The Bone remains in the Company). These three stations will be
moved into a divestiture trust upon approval by the FCC of the entire
transaction. In addition, as a result of some attributable interests of
some of our Lenders in other radio companies and other considerations, our
stations in Cape Cod and Boston MA will be moved into separate companies.
However, Nassau will continue to operate these stations.
Most importantly, an important message I would like to convey to all is that
other than this positive development for our capital structure and the
future of our company referenced above, there are no other changes occurring
in connection with this transaction that will impact the operations of the
Company. I remain as your CEO and your existing management team is and will
be here to assist and guide all of you and the Company through these
interesting and challenging times and on to better times ahead for all.
Nassau, as has been the case numerous times before, is ahead of the curve
with our corporate restructuring. This year there will be substantial
changes to the capital structures and ownership profiles of many companies
in our industry due to the economic and credit environment, and I am pleased
that we now have a capital structure that allows us to get back to the
important work of providing unparalleled service to our listeners and
advertisers.
I would like to personally thank all of you for your hard work and
dedication and please feel free to contact me personally or any one of our
senior managers with any questions regarding this transaction.
Lou
