Radio One, Inc. Announces Redemption of Approximately $200.0 Million of High Tides; Completes Redemption of All Remaining Outstanding High Tides
WASHINGTON, Feb 23, 2005 (BUSINESS WIRE) -- Radio One, Inc. (NASDAQ:ROIAK and ROIA) announced today that it has redeemed approximately $200.0 million of its outstanding 6-1/2% Convertible Preferred Securities, Remarketable Term Income Deferred Equity Securities ("High Tides"). The Company delivered formal notice of the redemption to holders of the High Tides on February 7, 2005. The High Tides were redeemed on February 22, 2005. As previously announced, the Company redeemed $110.0 million of High Tides on February 16, 2005. The Company has now redeemed all of its outstanding High Tides (approximately $310.0 million), which were otherwise convertible into a total of 5,803,699 shares of its Class D common stock. The redemption of the High Tides was funded using net proceeds from the Company's recent sale of $200.0 million of 6-3/8% senior subordinated notes due February 2013, drawdowns under the Company's bank credit facility and available excess cash.
Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2004 net broadcast revenue) and the largest company that primarily targets African-American and urban listeners. Radio One owns and/or operates 69 radio stations located in 22 urban markets in the United States and reaches more than 13 million listeners every week. Radio One also owns approximately 36% of TV One, LLC, an African-American targeted cable network, which is a joint venture with Comcast Corporation and DIRECTV. Additionally, Radio One programs "XM 169 The POWER" on XM Satellite Radio and recently announced a definitive agreement to acquire 51% of Reach Media, Inc., owner of the Tom Joyner Morning Show and other interests associated with Tom Joyner, a leading urban media personality. That acquisition is expected to close in the first quarter of 2005.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including the absence of a combined operating history with an acquired company or radio station and the potential inability to integrate acquired businesses, seasonal nature of the business, granting of rights to acquire certain portions of the acquired company's or radio station's operations, market ratings, variable economic conditions and consumer tastes, as well as restrictions imposed by existing debt and future payment obligations and agreed upon conditions to closing. Important factors that could cause actual results to differ materially are described in Radio One's reports on Forms 10-K and 10-Q and other filings with the Securities and Exchange Commission.
For more information contact Scott R. Royster, Executive Vice President and Chief Financial Officer at 301-429-2642.
SOURCE: Radio One, Inc.
Radio One, Inc.
Scott R. Royster