Cumulus Media Inc. Provides Update on Susquehanna Radio Acquisition
April 12, 2006, Atlanta - Cumulus Media Inc. (NASDAQ: CMLS) announced today that it currently expects the pending acquisition of the radio broadcasting business of Susquehanna Pfaltzgraff Co. by Cumulus Media Partners, LLC ("Media Partners") to be completed in May 2006.
As previously announced, Media Partners is a private partnership created by Cumulus, Bain Capital, The Blackstone Group and Thomas H. Lee Partners to acquire the radio broadcasting business of Susquehanna Pfaltzgraff. In October 2005, a wholly owned subsidiary of Media Partners entered into a definitive agreement to acquire the business for approximately $1.2 billion. Cumulus will enter into a management agreement with Media Partners, pursuant to which management of Cumulus will manage the operations of Media Partners' subsidiaries following the acquisition.
In connection with the formation of Media Partners, Cumulus agreed to contribute its four radio stations (including related licenses and assets) in the Houston, Texas and Kansas City, Kansas markets in exchange for membership interests in Media Partners. Cumulus will contribute three of the four stations to a wholly owned subsidiary of Media Partners, CMP KC, LLC, which expects to enter into a secured credit facility.
A portion of the acquisition consideration for the radio broadcasting business of Susquehanna Pfaltzgraff is expected to be provided by a combination of senior and subordinated indebtedness incurred by one or more subsidiaries of Media Partners.
Cumulus Media Inc. is the second-largest radio company in the United States based on station count. Giving effect to the completion of all pending acquisitions and divestitures, Cumulus Media Inc., directly and through its investment in Cumulus Media Partners, will own or operate 345 radio stations in 67 U.S. media markets. Cumulus's headquarters are in Atlanta, Georgia, and its web site is www.cumulus.com.
Cumulus Media Inc. shares are traded on the NASDAQ National Market under the symbol CMLS. Certain statements in this release may constitute "forward-looking" statements, which are statements that relate to Cumulus's future plans, revenues, station operating income, earnings, objectives, expectations, performance, and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the radio broadcasting industry, advertising demand in our markets, the possibility that advertisers may cancel or postpone schedules in response to national or world events, competition for audience share, our success in executing and integrating acquisitions, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations, and other risk factors described from time to time in Cumulus Media Inc.'s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2005. Cumulus Media Inc. assumes no responsibility to update the forward-looking statements contained in this release as a result of new information, future events or otherwise.Back to previous