Seeking Alpha

QualityStocks'  Instablog

QualityStocks
Send Message
QualityStocks (www.qualitystocks.net) assists publicly traded companies by getting their story out to the investment community while helping investors discover emerging companies with plenty of growth potential. Our name, QualityStocks, emphasizes our commitment to connect subscribers with... More
My company:
QualityStocks
My blog:
QualityStocks Micro-Cap and Small-Cap Blog
  • Cumulus Media Inc. (CMLS) Announces Proposal for Strategic Merger 0 comments
    Feb 22, 2011 12:00 PM | about stocks: CMLS
    Cumulus Media Inc., the nation’s second largest radio broadcaster based on station count, today announced that Cumulus and Citadel Broadcasting Corp. have entered into an exclusivity agreement in regards to a merger agreement in which Cumulus will acquire all of the outstanding common stock and warrants of Citadel for $37 per share.

    The merger of Cumulus, Citadel and CMP would provide Cumulus with approximately 120 U.S. markets, including eight of the Top 10 markets, bringing Cumulus’ station ownership count to 570 radio stations.

    The deal will also result in Cumulus having a balance sheet with lower overall leverage and simplified capital structure; an enhanced equity market capitalization for Cumulus, thereby resulting in great trading liquidity and flexibility; an enhanced competitive edge in the local digital media marketplace; and a syndicated network of content and technology assets.

    Per Cumulus’ proposal, Citadel shareholders would receive a cash and Cumulus stock combination for each Citadel share and warrant with a fixed exchange ratio. The $37 per share price would be capped at $30 per share in cash and a maximum of $14 per share in Cumulus stock.

    Cumulus said it expects to pay the cash portion of the purchase price with up to $500 million in equity financing from Crestview Partners and Macquarie Capital. It expects to pay the remainder through debt financing to be led by UBS Investment Bank and Macquarie Capital.

    For more information visit cumulus.com

    Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net
     
    Stocks: CMLS
Back To QualityStocks' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.