Wednesday, February 23, 2011

Brokers Love Cumulus/Citadel Deal...

Not everyone thinks Cumulus Media is crazy to take on about $770 million in outstanding Citadel debt by paying $1.8 billion for the privilege. You know the people that love this deal? Brokers, that's who. Moody's, the investor service that owns a 40% share in the world credit rating market can't issue press releases fast enough over this pending deal. Moody's main competitor, Standard & Poor's is the color of money envious. To recap - terms of this blockbuster acquisition includes, according to Radio Ink, "Cumulus acquiring Citadel's 225 radio stations in over 50 markets and also the Citadel Media business, which is among the largest radio networks in the U.S. After giving effect to the proposed acquisition, Cumulus would operate about 570 radio stations and would be well-diversified given the combination of Cumulus, CMP Susquehanna and Citadel stations across 120 markets nationally." All for the bargain-basement price of $1.8 billion...

"The $1.8 billion price will be financed by a combination of $500 million in equity financing from Crestview Partners and Macquarie Capital, and the assumption of about $770 million in outstanding Citadel debt, which is expected to be repaid." Moody's placed Cumulus Media ratings on review for a possible upgrade over the deal. "Moody's believes that the potential for lower leverage, synergies and favorable diversification from the proposed acquisition improves the financial profile of the company." ...

What this proposed deal proves is that the financial world loves companies that assume $770 million in debt for a mere $1.8 billion. Is this a great country or what???

10 Timeline Memories:
1.1822] Please come to Boston: The city of Boston is incorporated…
2.1836] Remember the Alamo: The siege of the Alamo begins in San Antonio (TX)…
3.1896] Rockin’ the Tootsie Roll: The Tootsie Roll is introduced by transplanted European Leo Hirshfield. The Tootsie Pop came along in 1931. Tell me there’s anything better than cherry TPs. Then there's this Tootsie Roll...
4.1927] Let the fun begin: President Calvin Coolidge signs a bill creating the Federal Radio Commission. On July 1, 1934 the name will be changed to the Federal Communications Commission (FCC)…
5.1945] Raising the flag: U.S. Marines on Iwo Jima capture Mount Suribachi and raise the American Flag…
6.1954] Salkin’ it to ya: The first mass inoculation of children against polio using the Salk vaccine begins in Pittsburgh…
7.1983] Big Bucks for a Bulldog: Junior running back Herschel Walker of Georgia becomes the highest paid player in football history when he signs a $1.5 million a year contract with Donald Trump’s New Jersey Generals of the USFL…
8.1997] Madman goes berserk: A Palestinian madman opens fire on the observation deck of the Empire State Building, killing one person and wounding six before taking his own life. A classmate of my son Robert, Matt Gross was shot in the head and suffered permanent brain damage. Matt’s brother Daniel started a successful anti-violence group…
9.1999] Guilty as charged: A jury in Jasper (TX) convicts white supremacist John William King of murder in the dragging death of a black man - James Byrd Jr…
10.2003] Grammy Gold: Norah Jones wins 5 Grammy Awards for the LP "Come Away With Me."...

Music Memories:

Events: The Smokin' Hit Songwriters Seminar/Retreat will be held March 18 - 20, 2011 at Jim Oliver's Smoke House, 850 West Main Street, Monteagle, TN. Festivities begin at 6:30pm on Friday, March 18. Registration is $150. For additional information, go to Facebook and do a search for the seminar...

"Happy Birthday...happy birthday":
Dakota Fanning (17), Jerod Mayo (25), Kristin Davis (46), Bobby Bonilla (48), Tom Bodett (56), Ed 'Too Tall' Jones (60), Johnny Winter (67), Ron Hunt (70) and Peter Fonda (71)...

Timeline Countdown: 18 days until Daylight time, 25 days until the beginning of spring and 36 days until MLB opening day...
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