Becoming an even bigger business player among big radio players, Cumulus Media Inc. has completed its acquisition of Citadel Broadcasting Corp. The latter is now an “indirect wholly owned subsidiary” of Cumulus.
The enlarged Cumulus Media is expected to have approximately 570 stations in 120 markets. The company also now has a radio network operation with some 4,000 affiliates total. It is positioning itself as “the largest pure-play radio broadcaster in the United States” (whereas Clear Channel, for example, owns more stations but also is active in significant other media segments).
The deal earlier received sign-offs from the Department of Justice and the FCC, with some conditions. As of press time, the agreement involves $1.4 billion in cash and, initially, some 26.2 million shares of Cumulus Media Class A stock. Warrants to purchase another 70 million Class A Cumulus Media shares will be available as well to holders of Citadel securities.
To facilitate the deal, Cumulus arranged a repayment of much current debt along with a refinancing of other debt, in addition to obtaining new loans, issuance of further Class A stock warrants, issuance of a special limited preferred stock class and the proceeds of a sale of Cumulus Media Class A stock. Investors involved in the credit activity include Crestview Partners, Macquarie Capital (USA) and UBS Securities.