Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it completed the previously announced acquisition of ten television stations and two associated digital sub-channels in seven markets as well as the Inergize Digital e-Media operations from entities controlled by privately-held Newport Television, LLC (“Newport”) for $225.5 million in a transaction that is expected to be immediately accretive to Nexstar. Nexstar financed the acquisition through borrowings under its new senior secured credit facilities, which were consummated concurrent with the closing of the acquisition.
Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, “This transaction squarely meets our acquisition criteria from both an operating and financial perspective. The addition of the Newport stations substantially broadens Nexstar’s local television broadcasting platform with stations that are geographically complementary to and diversify our operating base while also presenting significant financial and operating synergies with the Company’s existing portfolio. Inergize Digital, an industry leader offering fully integrated e-Media management solutions on-air, online and for mobile devices, brings multi-year contracts with approximately 75 stations and other entities outside of the Nexstar platform and these operations dovetail well and will be integrated with Nexstar’s existing e-Media and GoLocal.biz platforms.”
|Newport Television Stations to be Acquired by Nexstar Broadcasting Group|
|1||Salt Lake City, UT||33||KTVX||ABC|
|2||Salt Lake City, UT||33||KUCW||CW|
With the closing of the acquisition and the new credit facility, Nexstar’s previously announced, Board-authorized dividend policy will become effective. That policy provides Nexstar with the authorization to declare a total annual cash dividend of $0.48 per share in equal quarterly installments of $0.12 per share, with respect to its shares of Class A common stock and Class B common stock. Dividend determinations are subject to final declaration by Nexstar’s Board of Directors and the first quarterly cash dividend is expected to be paid in the first quarter of 2013.