Radio One, Inc. Announces Officers' Repayment of Loans
WASHINGTON--(BUSINESS WIRE)--Feb. 8, 2005--Radio One, Inc. (NASDAQ:ROIAK and ROIA) today announced that loans made to two of its executive officers prior to the enactment of the Sarbanes-Oxley Act of 2002, have been repaid by those individuals, one fully and one partially. As previously disclosed, the Company extended loans of $750,000 and $21.1 million, respectively, to Scott R. Royster, the Company's Executive Vice President and CFO and Alfred C. Liggins, the Company's President and CEO, in connection with their employment agreements. The loan to Mr. Royster was made in January 2002 and to Mr. Liggins in April 2001. The loan to Mr. Liggins was made to enable him to purchase 1,500,000 shares of the Company's Class D common stock. The promissory notes underlying the loans permit repayment using cash and/or Radio One common stock. The loan to Mr. Royster was due in January 2005 and was paid in full with a combination of cash and 20,000 shares of the Company's Class D common stock. In December 2004, Mr. Liggins made a payment of $2.0 million in cash and in February 2005, he made a payment of approximately $17.8 million using 1,125,000 shares of the Company's Class D common stock. As of February 4, 2005, Mr. Liggins' loan balance was approximately $5.9 million. The balance of Mr. Liggins' promissory note is due in full in April 2005. All shares transferred back to the Company in satisfaction of the loans has been retired by the Company. As a result of these transactions, the number of issued and outstanding shares of Radio One's Class D common stock has been reduced by 1,145,000.
Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2003 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.
CONTACT: Radio One, Inc. Scott R. Royster, 301-429-2642 SOURCE: Radio One, Inc.