Entercom to buy radio business from Lincoln

NEW YORK -- Entercom Communications will add 15 Stations in Atlanta, Denver, Miami and San Diego with the Lincoln purchase. Entercom President and CEO David Field said, “We are excited to announce the acquisition of Lincoln Financial Media and welcome the addition of their outstanding brands and talented broadcasters to Entercom. LFM is a great organization that has done an excellent job serving its listeners, customers and communities over many years and we look forward to building on that tradition. LFM is a perfect fit for us as it bolsters our position in Denver and expands our footprint into Atlanta, Miami and San Diego with terrific brands that have significant growth potential. Furthermore, it fulfills our disciplined acquisition criteria as it enhances our company’s competitive position and growth and should be accretive to shareholders in 2015 while having a minimal impact on leverage.” Entercom plans to divest one station in Denver to comply with FCC rules.

Entercom anticipates that it will begin operating the LFM stations under a time brokerage agreement which is expected to commence in late January following the usual Justice Department regulatory review. 

The deal is structured as an acquisition of the stock of LFM with a tax election that allows Entercom to receive a step-up in the tax basis of the station tangible and intangible assets providing additional future tax shields and enhancing future free cash flow. The $105 million purchase price will be paid in the form of $77.5 million in cash and $27.5 million in new perpetual cumulative convertible preferred stock that will be issued to Lincoln. Entercom expects to finance the cash portion of the purchase price through a combination of its existing $50 million revolver, cash on hand, and through other financing sources, if necessary.

Here are the markets and stations Entercom will be purchasing:
Atlanta
WSTR-FM - Hot Adult Contemporary
WQXI-AM - Sports

Denver
KEPN-AM - Sports
KYGO-FM  - Country
KKFN-FM - Sports
KQKS-FM - Rythmic CHR
KRWZ-AM - Oldies
Translator - Comedy
Miami
WAXY-AM/FM - Sports
WLYF-FM - Adult Contemporary
WMXJ-FM- Classic Hits
San Diego
KBZT-FM - Alternative
KSON-FM/KSOQ-FM - Country
KIFM-FM - Adult Contemporary