Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) (“Nexstar”) announced today that it and Mission Broadcasting, Inc. (“Mission”) have entered into definitive agreements to acquire six television stations in two markets for $37.5 million, in transactions that are expected to be immediately accretive upon closing.
The stations are being acquired from Gray Television Group, Inc. (NYSE:GTN and GTN.A) (“Gray”) and Excalibur Broadcasting, LLC (“Excalibur”) and represent the equity interests of certain subsidiaries of Hoak Media, LLC ("Hoak"), and Parker Broadcasting, Inc. ("Parker") which Gray and Excalibur previously agreed to purchase from Hoak and Parker, respectively.
Under the terms of the agreements, Nexstar will acquire five stations from Gray, and Mission will acquire one station from Excalibur (see table below). Nexstar will fund $33.5 million of the purchase consideration and Mission will fund the $4 million balance. The acquisitions will be funded through internal sources, borrowings under the existing credit facilities and future credit market transactions.
|City of License||Market Rank||Station||Affiliation|
|1||Panama City, FL||159||WMBB||ABC|
|2||Grand Junction, CO||185||KFQX (1)||FOX|
|3||Grand Junction, CO||KREX||CBS|
|4||Glenwood Springs, CO||KREG (2)||CBS|
|5||Montrose, CO||KREY (2)||CBS|
|6||Grand Junction, CO||KGJT||MyNetworkTV|
|(1) to be acquired by Mission|
|(2) KREG and KREY operate as satellite stations of KREX|
The planned station acquisitions will again expand Nexstar’s and Mission’s local television broadcasting and digital media platforms with stations that are complementary to their operating base and present significant financial and operating synergies. Upon closing these and other previously announced transactions (and reflecting the dissolution of Nexstar’s JOA in Rochester, NY at year-end) Nexstar’s portfolio of stations that it owns, operates, programs or to which it provides sales and other services, will increase to 108 stations in 56 markets reaching approximately 16.0% of all U.S. television households.
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