IRVING, Tex. - (Business Wire) Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it entered into a definitive agreement to acquire the assets of KWBF-TV, the MyNetworkTV affiliate serving the Little Rock, Arkansas market for $4 million from Equity Broadcasting Corp. The proposed acquisition complements Nexstar
’s existing Little Rock television station holdings where the Company operates KARK-TV, the local NBC affiliate in the market.
According to Nielsen Media’s 2008-2009 Local Market Estimates, Little Rock will be ranked as the 56th largest television market in the country in 2009. Upon completion of the acquisition Nexstar will own, operate, program or provide services to more than one station in 19 of the 29 markets where it operates. KWBF-TV will represent the 51st television station that Nexstar owns or for which it provides sales, programming and other services.
Commenting on the agreement, Nexstar Broadcasting Group President and CEO, Perry A. Sook said, “This transaction reflects Nexstar’s long-term strategy of identifying accretive acquisitions and prudently expanding our portfolio by operating multiple stations in concentrated geographic areas. Under Nexstar’s ownership, KWBF-TV will realize additional retransmission revenues and we’ll achieve operating and financial synergies between KARK-TV and KWBF-TV. Post-closing, our immediate strategies will focus on leveraging our existing local sales teams, award-winning local news and e-Media operations across both stations. On a pro-forma basis the purchase price represents a multiple of less than six times the last twelve months’ cash flow. As such, the acquisition is expected to be accretive to the company which will allow for further balance sheet de-leveraging.”
Nexstar intends to finance the acquisition through cash on hand. Pro-forma for the transaction, Nexstar is on track to end 2008 with a total leverage ratio of approximately 6.0x compared to its permitted leverage covenant of 6.50x at December 31, 2008.
The transaction, which is subject to FCC approval and other customary conditions, is expected to close in the first half of 2009.
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 50 television stations in 29 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar’s television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 8.2% of all U.S. television households.
Forward-Looking Statements
Statements in this news release which are not purely historical facts, including statements about forecasted financial projections (such as changes in net revenue) or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies in the future, may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve risks and uncertainties, and are subject to change based on various
important factors, including the impact of changes in national and regional economies, our ability to service and refinance our outstanding debt, successful integration of acquired television stations (including achievement of synergies and cost reductions), pricing fluctuations in local and national advertising, future regulatory actions and conditions in the television stations' operating areas, competition from others in the broadcast television markets served by the Company, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this news release might not occur. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.
Nexstar Broadcasting Group, Inc.
Matt Devine, 972-373-8800
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph Jaffoni, Ratula Roy, 212-835-8500
nxst@jcir.com
