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Toucher & Rich bring back laid-off producer

BBGI is not a private company; I'm not sure why you keep stating that. True, a large percentage of shares likely are owned by family members to this day.

iHeartMedia exited bankruptcy January 2019; my Pittman comment relates to compensation reductions he voluntarily took in 2020 following onset of the pandemic.

However, your first point certainly makes sense (about the expense cuts being market dependent).
 
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Strictly anecdotal, but I've noticed many fewer political ads on radio stations in the NH/VT Upper Valley, despite a couple of heated races going on in New Hampshire. (Vermont, as usual, is politically quiet.) The New Hampshire ads are saturating television, though, both OTA/cable and on YouTube TV. They cannot be avoided if you watch more than 15 minutes of any program. No idea if political ads are in decline to this degree on radio elsewhere, but the situation here in Market 217 appears dire.
 
Did more reading of BBGI's 10K and 10Q filings and related documents.

The Revolver and Term Loan that had been governed by a 2017 Credit Agreement containing a First Lien Leverage Ratio covenant (permitted limit of 5.25x applies right now) were paid down to zero (in the case of the Revolver) and repaid in full (in the case of the Term Loan) with proceeds from the $300MM in Senior Secured Notes that were issued in February 2021.

Although the Senior Secured Notes are first lien secured, they are not subject to the provisions of the 2017 Credit Agreement, but rather, the provisions of an Indenture dated February 2021. I found no indication that the Indenture contains any type of financial maintenance covenant. Whereas a mix of traditional banks and hedge funds likely held 2017 term debt, I suspect a greater percentage of the Senior Secured Notes issued pursuant to the 2021 Indenture are held by hedge funds.

Bottom line - unless BBGI needs to borrow on its Revolver, it need not worry about any First Lien Leverage Ratio breach. The overarching concern is the cash burn situation. At some point, the debt capital markets well will run dry, and the company will either need to (a) demonstrate positive cash flow or (b) do a distressed debt exchange or reorganize in Chapter 11.

A balance of $295 million remained outstanding under the Senior Secured Notes as of June 30. The company is probably on pace to generate EBITDA (as adjusted) of $20 million or less for 2022. After giving credit to cash on hand, it is almost certain Net Leverage will exceed 10x at the end of the year. That is a terrible result for any company belonging to an industry that is on the decline, and such a result is strongly suggestive of financial distress (which certainly makes sense, since the company is free cash flow negative on a levered basis).

I have no idea if there is any active trading of the Senior Secured Notes - a $300 million issue is on the small end of the scale and thus less likely to be traded - but given where risk free interest rates reside today, that 8.625% coupon is very light. Any trading would certainly be at a substantial discount to par.

Here is the 2021 Indenture (which is a PUBLIC document posted to a PUBLIC web site, for those of you who might wrongfully think I am sharing something that is non-public):
 
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CTListener said:
Strictly anecdotal, but I've noticed many fewer political ads on radio stations in the NH/VT Upper Valley, despite a couple of heated races going on in New Hampshire. (Vermont, as usual, is politically quiet.) The New Hampshire ads are saturating television, though, both OTA/cable and on YouTube TV. They cannot be avoided if you watch more than 15 minutes of any program. No idea if political ads are in decline to this degree on radio elsewhere, but the situation here in Market 217 appears dire.
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That truly is dire. Especially since Dems are buying everything they can including very wasteful buys. Special interests have spent an unprecedented amount of money on behalf of Hassan…buying every BOSTON TV avail they could get for TWO YEARS. Think about that: buyers are purchasing REACH, 90%+ of which is useless (greater Boston part of Boston market)…just to get the small part of the audience in So. NH! And they’ve been wasting money on these 90%+ totally useless expensive major market ads for an unheard of..TWO YEARS!

The fact radio, almost exclusively hitting NH voters, is being somewhat ignored is..frankly…shocking in this context.
 
BostonRadioListener said:
That truly is dire. Especially since Dems are buying everything they can including very wasteful buys. Special interests have spent an unprecedented amount of money on behalf of Hassan…buying every BOSTON TV avail they could get for TWO YEARS. Think about that: buyers are purchasing REACH, 90%+ of which is useless (greater Boston part of Boston market)…just to get the small part of the audience in So. NH! And they’ve been wasting money on these 90%+ totally useless expensive major market ads for an unheard of..TWO YEARS!

The fact radio, almost exclusively hitting NH voters, is being somewhat ignored is..frankly…shocking in this context.
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The TV ads pushing Bolduc are increasing as the election nears. The Republican is pounding away on Hassan's luxurious second home, her siding with the "DC Liberals" on "the Biden agenda," being responsible for soaring fuel prices, etc. The Hassan ads, until recently almost exclusively hammering Bolduc on what is protrayed as his uncompromising, no-exceptions stance against abortion, have been slowly shifting in focus to his opinions on funding Medicare and Social Security. It's all mind-numbingly horrible, strident stuff. If I were a New Hampshire voter (and only the width of the Connecticut River keeps me from being one), I'd hate both candidates by now and probably just sit the election out rather than choose between Mao and Hitler. But again, this is all on TV. The long advertising breaks on Great Eastern Radio and Binnie's stations are pretty much unchanged from what they've always been -- car dealers, grain and feed stores, hiking/skiing gear merchants, etc., maybe one political ad every two or three breaks.
 
MRBIboredop said:
radio stations HATE political ads as per Federal law they have to be sold at the lowest rate.

www.broadcastlawblog.com

FCC Makes Clear that Lowest Unit Charges for Candidate Ads Ends on Election Day

The FCC yesterday released a Public Notice making clear that lowest unit rates (or lowest unit charges) end on Election Day. Some broadcasters had asked
www.broadcastlawblog.com
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I don't know that that is true about stations hating them.

The 'lowest possible rate' is something that is managed and monitored so as not to have to sell them at a dollar/holler.
 
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radiojomo said:
Guess. If my boss put me in a corner to cut my own salary in order to save a co-worker that helped me out in a big way, and I have the biggest show in Boston (huge sports betting market), I would probably be talking to my agent...
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Was listening to Kirk Minihane's podcast last week where they talked about the layoffs at 98.5 and in particular Mike Lockhart. Kirk was shocked that the members of a show pulling a 25 share and setting records for highest rated morning show ever weren't immediately telling management that in no uncertain terms are members of their team to be F'ed with and if cuts have to be made you figure out where to do it elsewhere.

I had to agree, I mean we've all seen it in any number of workplaces where people are just so good at their jobs that they're untouchable and they know it.
 
CTListener said:
The TV ads pushing Bolduc are increasing as the election nears. The Republican is pounding away on Hassan's luxurious second home, her siding with the "DC Liberals" on "the Biden agenda," being responsible for soaring fuel prices, etc. The Hassan ads, until recently almost exclusively hammering Bolduc on what is protrayed as his uncompromising, no-exceptions stance against abortion, have been slowly shifting in focus to his opinions on funding Medicare and Social Security. It's all mind-numbingly horrible, strident stuff. If I were a New Hampshire voter (and only the width of the Connecticut River keeps me from being one), I'd hate both candidates by now and probably just sit the election out rather than choose between Mao and Hitler. But again, this is all on TV. The long advertising breaks on Great Eastern Radio and Binnie's stations are pretty much unchanged from what they've always been -- car dealers, grain and feed stores, hiking/skiing gear merchants, etc., maybe one political ad every two or three breaks.
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All true. And the fact both sides are willing to waste money on the reach of 90%+ that can’t vote—is pretty repulsive. The fact Dems have been footing this wasteful Buy for two years is exhibit A on why we need to reform this system of electing officials.
 
BostonRadioListener said:
That truly is dire. Especially since Dems are buying everything they can including very wasteful buys. Special interests have spent an unprecedented amount of money on behalf of Hassan…buying every BOSTON TV avail they could get for TWO YEARS. Think about that: buyers are purchasing REACH, 90%+ of which is useless (greater Boston part of Boston market)…just to get the small part of the audience in So. NH! And they’ve been wasting money on these 90%+ totally useless expensive major market ads for an unheard of..TWO YEARS!

The fact radio, almost exclusively hitting NH voters, is being somewhat ignored is..frankly…shocking in this context.
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And they are buying as much as they can in Portland and Burlington/Plattsburgh as well

Manchester was a feisty AM market into the 70s but as FM took over listeners embraced out-of-market signals, WZID being the exception.

I wonder if Beasley regrets taking WBZ-FM in exchange for WMJX and cash.

WBZ-FM is the flagship of 3 Boston teams - Patriots, Bruins, and Celtics. The Patriots drive the bus but the Bruins only get bumped when there is a conflict with the Pats as the Celtics always get bumped for the Bruins.

I have a friend who was overjoyed when Beasley took over the CBS Radio cluster in Tampa as she had worked for them earlier in her career and said they treat employees well and then she was cut with no warning or explanation.

It is a brutal business today and suits at CBS Radio decided to bail 5 years ago and frankly found a sucker with David Field and Entercom.
 
BostonRadioListener said:
All true. And the fact both sides are willing to waste money on the reach of 90%+ that can’t vote—is pretty repulsive.
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As Fenway mentioned, a lot of NH residents listen to signals from outside of the market...both radio and TV.

There is a historic (I can't find it now) photo of the Governor of NH long ago in front of a WBZ microphone to "address the people of NH".

I would say much of Rockingham County is more a suburb of Boston than it is a NH community. (More Boston Globe than Union Leader. More Boston TV than Channel 9, etc., etc. )

I would dare say Salem, Derry, Nashua citizens are probably more influenced of what's in the Boston media than the Union Leader, etc. More likely to watch Newscenter 5 than Newsnine. (There is always an under current of NH residents who realize that Ch 9 is a second tier station.)
 
Wimmmex said:
As Fenway mentioned, a lot of NH residents listen to signals from outside of the market...both radio and TV.

There is a historic (I can't find it now) photo of the Governor of NH long ago in front of a WBZ microphone to "address the people of NH".

I would say much of Rockingham County is more a suburb of Boston than it is a NH community. (More Boston Globe than Union Leader. More Boston TV than Channel 9, etc., etc. )

I would dare say Salem, Derry, Nashua citizens are probably more influenced of what's in the Boston media than the Union Leader, etc. More likely to watch Newscenter 5 than Newsnine. (There is always an under current of NH residents who realize that Ch 9 is a second tier station.)
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Obviously, yes. That’s why the spots run.
But buyers of the spot are ALSO paying TEN TIMES the cost to reach those New Hampshire viewers-having to pay for the reach of the 90%+ who watch Boston channels and do not live in NH. It’s incredibly inefficient and would never occur in the real (non political) world.
 
Wimmmex said:
As Fenway mentioned, a lot of NH residents listen to signals from outside of the market...both radio and TV.

There is a historic (I can't find it now) photo of the Governor of NH long ago in front of a WBZ microphone to "address the people of NH".

I would say much of Rockingham County is more a suburb of Boston than it is a NH community. (More Boston Globe than Union Leader. More Boston TV than Channel 9, etc., etc. )

I would dare say Salem, Derry, Nashua citizens are probably more influenced of what's in the Boston media than the Union Leader, etc. More likely to watch Newscenter 5 than Newsnine. (There is always an under current of NH residents who realize that Ch 9 is a second tier station.)
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What makes NH television even odder is Hearst allows cable companies to carry both WCVB and WMUR but cut WMUR from most Massachusetts systems south of the Merrimack Valley.

WCVB routinely covers southern NH news with their own crews instead of using WMUR staffers.

Back in the 80s, there was a push to make Manchester/Concord a separate ADI, and that was led by Thomas Flatley who owned Channel 21 in Concord. The Boston stations lobbied hard to make sure that didn't happen as losing the 6 counties in NH would have dropped Boston to the low teens on the Neilsen DMA list.
 
Wimmmex said:
As Fenway mentioned, a lot of NH residents listen to signals from outside of the market...both radio and TV.

There is a historic (I can't find it now) photo of the Governor of NH long ago in front of a WBZ microphone to "address the people of NH".

I would say much of Rockingham County is more a suburb of Boston than it is a NH community. (More Boston Globe than Union Leader. More Boston TV than Channel 9, etc., etc. )

I would dare say Salem, Derry, Nashua citizens are probably more influenced of what's in the Boston media than the Union Leader, etc. More likely to watch Newscenter 5 than Newsnine. (There is always an under current of NH residents who realize that Ch 9 is a second tier station.)
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That's the thing, WMUR is the sole channel for the state. On the northern side, they are more likely to follow Maine broadcasts, and on the western side, Vermont broadcasts. New Hampshire is a bit fragmented when it comes to television broadcasts. You're also judging it by the southern part of the state. Salem, Derry, and Nashua are either just as close or closer to Boston than they are to Concord. It's also more likely for residents in those communities to work in Massachusetts.
 
Rich Shertenlieb has a moral compass but also calculated that getting an extra hour of sleep was worth getting the deal done.

I remember in the mid-'60s how Group W snookered IBEW 1228 in a new contract for WBZ AM-FM-TV. Back then Boston technicians were making the same amount as workers in NYC thanks to CBS owning WEEI AM-FM. Westinghouse then agreed that anything with a VU meter would be controlled by IBEW and the union was ecstatic.

Then WBZ-AM promptly installed combo boards made by McCurdy that had no VU meters and the jocks had to run their own board.

Debt service is killing the major radio groups and listenership has dropped at an alarming rate from pre-COVID 2019.
 
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