Beasley Broadcast Group to Acquire Greater Media

RADIO ONLINE | Tuesday, July 19, 2016

Beasley Broadcast Group has agreed to acquire Greater Media Inc. and all of its outstanding stock for approximately $240 million. Under the terms of the deal, Greater Media shareholders are expected to receive $100 million in cash and $25 million in shares of the company's class A common stock (at a fixed value of $4.61 per share). Also, the shareholders of Greater Media will receive the net cash proceeds from the sale of its tower assets, estimated to be $20 million. Additionally, Beasley will refinance approximately $80 million of debt of Greater Media.

Beasley will initially acquire 21 radio stations in seven markets including four new markets (Detroit, Middlesex NJ, Monmouth NJ and, Morristown NJ) and three markets where the company has existing operations (Philadelphia, Boston and, Charlotte).

Beasley intends to fund the acquisition through borrowings under a new credit facility that the company expects to enter into in connection with the closing of the acquisition, together with cash and cash equivalents available to the company and the issuance of class A common stock as previosuly described. RBC Capital Markets and U.S. Bank have provided committed financing in support of the acquisition.

Interim CEO/CFO Caroline Beasley commented, "The acquisition of Greater Media's broadcasting and related digital assets represents a transformational growth opportunity for Beasley and is strategically and financially compelling for our shareholders. The transaction increases our broadcast portfolio by approximately 40% and more than doubles our audience reach, giving us both market leading stations and great brands."

Greater Media Chairman/CEO Peter H. Smyth commented, "We share with Beasley a common appreciation for the enduring strength of local radio broadcasting and we are delighted that our stations will become part of Beasley's expanded footprint. As part of the Beasley portfolio, we believe our stations will be positioned extremely well for future growth and that our team members, customers and the communities we serve will continue to thrive."

The transaction, which has been approved by the boards of directors of both Beasley and Greater Media, is subject to FCC approval and other regulatory approvals (including Hart-Scott-Rodino) and other customary closing conditions. It's expected to close in the fourth quarter of 2016.