Radio One, Inc. (NASDAQ:ROIAK and ROIA) today announced that it has
entered into an Asset Purchase Agreement to sell KRBV –
FM, its radio station in Los Angeles, California, to Bonneville
International, the Salt Lake City based broadcast and communications
company. The transaction price is approximately $137.5 million. The
transaction is expected to close during the second quarter of 2008.
Alfred C. Liggins, III, Radio One’s CEO and
President stated, “This is an attractive
transaction for Radio One, as it frees-up capital and management
resources which can be re-deployed to execute our long-term strategy. We
expect to use the proceeds from this transaction to reduce our leverage,
accelerate our internet strategy and re-commence a limited buy-back of
our securities.” Rothschild Inc. acted as
financial advisor to Radio One in connection with the transaction.
The Company also announced today that its Board of Directors has
authorized a stock repurchase program for up to $150 million of Radio
One's Class A and Class D common stock through December 31, 2009. The
amount and timing of repurchases will be based on pricing, general
economic and market conditions, certain restrictions contained in
agreements governing Radio One's bank credit facilities and subordinated
debt and certain other factors. The repurchase program does not obligate
Radio One to repurchase any of its common stock and may be discontinued
or suspended at any time.
Radio One, Inc. (www.radio-one.com)
is one of the nation's largest radio broadcasting companies and the
largest radio broadcasting company that primarily targets
African-American and urban listeners. Pro forma for recently announced
transactions, Radio One owns and/or operates 53 radio stations located
in 16 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.
Cautionary Note Regarding Forward-Looking Statements
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. Forward-looking statements
represent management's current expectations and are based upon
information available to Radio One at the time of this release. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors, some of which are beyond Radio One's
control, that may cause the actual results to differ materially from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Radio One does not undertake to update any
forward-looking statements.
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