Radio One, Inc. Announces the Sale of Radio Stations in Dayton, OH and Louisville, KY
WASHINGTON--(BUSINESS WIRE)--May 18, 2007--Radio One, Inc. (NASDAQ: ROIAK and ROIA) today announced that it has entered into an Asset Purchase Agreement to sell all of its radio stations in Dayton, Ohio and five of its six radio stations in Louisville, Kentucky, to Main Line Broadcasting, a portfolio company of Arlington Capital Partners, a Washington, DC-based private equity fund. The transaction price is approximately $76.0 million which represents a purchase price multiple of approximately 12x based on 2006 station operating income for the stations being sold. The transaction is expected to close during the second half of 2007.
Alfred C. Liggins, III, Radio One's CEO and President stated, "This attractive transaction represents a continuation of our stated plans to sell radio stations in markets that are not necessarily core to our strategy, at prices above the current public trading multiples for most radio companies. Louisville and Dayton are actually the smallest of all of our markets in terms of the actual population of African-Americans. Additionally, there are several non-urban stations among the 10 stations being sold in this transaction. We expect to use the proceeds from this transaction to reduce our leverage and further strengthen the Company's balance sheet."
Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2006 net broadcast revenue) and the largest radio broadcasting company that primarily targets African-American and urban listeners. Pro forma for this transaction, Radio One owns and/or operates 61 radio stations located in 20 urban markets in the United States. Additionally, Radio One owns Magazine One, Inc. (d/b/a Giant Magazine) (www.giantmag.com), interests in TV One, LLC (www.tvoneonline.com), a cable/satellite network programming primarily to African-Americans and Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Radio One also operates the only nationwide African-American news/talk network on free radio and programs "XM 169 The POWER," an African-American news/talk channel, on XM Satellite Radio.
CONTACT: Radio One, Inc.
Scott R. Royster, EVP and CFO
SOURCE: Radio One, Inc.