|12 Months Ended|
Dec. 31, 2012
NOTE 16. SUBSEQUENT EVENTS
On February 25, 2013, we launched a tender offer to purchase for cash any and all of the outstanding 9 5/8% Notes and a related consent solicitation (collectively, the “Tender Offer”) to amend the indenture governing the 9 5/8% Notes (the “Indenture”). In connection with the Tender Offer, we plan to enter into a new senior secured term loan of up to $300 million, which will be used to fund the purchase of any 9 5/8% Notes that are tendered in the Tender Offer. We also plan to enter into a new senior secured revolving credit facility of up to $25 million. If the requisite consents have been obtained from holders of the 9 5/8% Notes in the Tender Offer, substantially all of the restrictive covenants, certain events of default and other provisions contained in the Indenture will be eliminated and the liens on the assets that secure the 9 5/8% Notes will be released, making any 9 5/8% Notes that remain outstanding after the consummation of the Tender Offer effectively subordinated to the new term loan and the new revolving credit facility to the extent of the value of the collateral. The proceeds from these facilities will be used to fund the Tender Offer and retire all other outstanding corporate debt. Holders of the 9 5/8% Notes who tender by the consent payment deadline, which is 5:00 pm, New York City time, on March 8, 2013, will receive a consent payment as part of the Tender Offer consideration. The Tender Offer is anticipated to expire at 12:00 midnight, New York City time, on March 22, 2013. Regardless of whether we obtain the requisite consents from holders of the 9 5/8% Notes in the Tender Offer, we intend, at our sole discretion and without any obligation to do so, to retire any 9 5/8% Notes that are not tendered in the Tender Offer in accordance with the terms of the Indenture, which may include redeeming the 9 5/8% Notes at a redemption price equal to 100.0% of the principal amount of the 9 5/8% Notes redeemed plus the Applicable Premium (as defined in the Indenture) as of, and accrued and unpaid interest, if any, to, but not including, the redemption date (the “Make Whole Redemption”) and/or pursuant to a provision in the Indenture whereby, prior to December 15, 2013, we may redeem up to an aggregate $30.0 million of the 9 5/8% Notes in any 12-month period, in connection with up to two redemptions in such 12-month period, at a redemption price of 103.0% of the principal amount thereof, plus accrued and unpaid interest to the redemption date (the “10% Redemption”). The first $26.0 million of untendered 9 5/8% Notes are expected to be redeemed pursuant to the 10% Redemption on June 1, 2013, the next $4.0 million of untendered 9 5/8% Notes are expected to be redeem pursuant to the 10% Redemption on December 12, 2013, and the balance of untendered 9 5/8% Notes are expected to be redeemed pursuant to the Make Whole Redemption on the applicable redemption date following the requisite notice. Upon entry into the new term loan and the new revolving credit facility, the Revolver, FCB Loan, and Subordinated Debt due to Related Parties will be terminated.
On December 3, 2012, we began operating radio station WMUU-FM, Greenville, South Carolina under an LMA with the owner. We have agreed to acquire the radio station for $6.0 million. The $6.0 million purchase price consists of $1.0 million due upon close of the transaction, $2.0 million payable in April 2014, and $3.0 million payable in advertising credits to Bob Jones University, a related party of the station owner. The acquisition of this radio station closed on February 5, 2013. Effective February 11, 2013, we changed the call letters of this station to WGTK-FM.
On November 1, 2012, we began operating radio station WJKR-FM, Columbus, Ohio under an LMA with the owner. The accompanying Consolidated Statements of Operations reflect the operating results of this entity as of the LMA date. The acquisition of this radio station closed on February 15, 2013. Effective February 15, 2013, we changed the call letters of this station to WTOH-FM.
Subsequent events reflect all applicable transactions through the date of the filing.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
No definition available.