Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) (“Nexstar”) announced
today that it has entered into a definitive agreement Bayou City
Broadcasting Evansville, Inc. (“BCBE”) for the sale of WEVV, the CBS
affiliate in Evansville, Indiana for $18.6 million. BCBE is a minority
led broadcaster owned by affiliates of Sankaty Advisors, LLC, Alta
Communications and Bayou City Broadcasting, LLC. Bayou City
Broadcasting, LLC (“BCB”) is owned by DuJuan McCoy, who will serve as
BCBE’s president and chief executive officer.
Perry A. Sook, Chairman, President and Chief Executive Officer of
Nexstar, commented, “The proposed transaction announced today highlights
our focus on completing pending transactions and represents the second
time in the last two months that Nexstar has structured an agreement
that furthers the FCC’s goal of increasing minority television ownership
diversity.”
Mr. McCoy founded BCB in December 2007 and in January 2008 agreed to
purchase seven television stations located in Abilene and San Angelo,
Texas. With this purchase, Mr. McCoy and BCB became the only African
American company to own and/or operate a Fox Affiliate in the United
States and the first African American to own and operate a network
affiliated station in Texas. For over two decades, the Federal
Communications Commission (“FCC”) has advanced proposals for the
incubation of broadcast station ownership by disadvantaged businesses,
including minority-owned companies. FCC data indicates that
African-American ownership of television stations is exceptionally low,
with African-Americans controlling only 0.7% of all television broadcast
stations. Last month Nexstar announced plans to sell three full-powered,
FOX affiliated stations in Shreveport, LA, Odessa-Midland, TX and Quad
Cities, IA, to Marshall Broadcasting Group, Inc. (“MBG”) a newly formed
minority owned media entity owned by Pluria Marshall Jr.
“Nexstar is taking an industry leading role in significantly expanding
the diversity of media ownership assets among minority operators and
addressing recent proposed FCC regulation changes,” said DuJuan McCoy.
“I am delighted we have been able to structure an agreement for BCBE’s
purchase of the Evansville CBS affiliate and would welcome other
opportunities to work further with Nexstar or other broadcasters who are
committed to supporting minority broadcasters as FCC licensees and
owners and operators of television stations.”
Nexstar’s recently announced station divestitures are subject to Federal
Communications Commission approval, the consummation of Nexstar’s
previously announced agreements to acquire the stock of privately-held
Communications Corporation of America (“CCA”), and other customary
closing conditions, and Nexstar expects to complete all announced
pending transactions in 2014. The sale of WEVV to BCB brings the overall
CCA transaction into compliance with Department of Justice requirements
for approval and will release the pending transaction from hold pending
divestiture.
Kalil & Co., Inc. acted as the exclusive broker for the seller in this
transaction.
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media company that
leverages localism to bring new services and value to consumers and
advertisers through its traditional media, digital and mobile media
platforms. Nexstar owns, operates, programs or provides sales and other
services to 80 television stations and 20 related digital multicast
signals reaching 46 markets or approximately 13.1% of all U.S.
television households. Nexstar’s portfolio includes affiliates of NBC,
CBS, ABC, FOX, MyNetworkTV, The CW, Telemundo, Bounce TV, Me-TV, Live
Well, LATV and an independent station. Nexstar’s 48 community portal
websites offer additional hyper-local content and verticals for
consumers and advertisers, allowing audiences to choose where, when and
how they access content while creating new revenue opportunities.
Pro-forma for the completion of all announced transactions Nexstar will
own, operate, program or provides sales and other services to 107
television stations and related digital multicast signals reaching 56
markets or approximately 16.0% of all U.S. television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have based
these forward-looking statements on our current expectations and
projections about future events. Forward-looking statements include
information preceded by, followed by, or that includes the words
"guidance," "believes," "expects," "anticipates," "could," or similar
expressions. For these statements, the Company claims the protection of
the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow and
operating expenses, involve risks and uncertainties, and are subject to
change based on various important factors, including the impact of
changes in national and regional economies, our ability to service and
refinance our outstanding debt, successful integration of acquired
television stations (including achievement of synergies and cost
reductions), pricing fluctuations in local and national advertising,
future regulatory actions and conditions in the television stations'
operating areas, competition from others in the broadcast television
markets served by the Company, volatility in programming costs, the
effects of governmental regulation of broadcasting, industry
consolidation, technological developments and major world news events.
Unless required by law, we undertake no obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news release
might not occur. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. For more details on factors that could affect these
expectations, please see our filings with the Securities and Exchange
Commission.
Copyright Business Wire 2014