NextMedia Announces Agreement To Sell Its Portfolio Of 33 Radio Stations To Dean Goodman's Newly Formed Digity
GREENWOOD VILLAGE, Colo., Oct. 10, 2013 /PRNewswire/ -- NextMedia Group, Inc. announced today that it has reached an agreement to sell its 33 radio stations to an affiliate of Digity, LLC. Digity, an affiliate of Palm Beach Broadcasting LLC, is a newly-formed media company headed by broadcast industry veteran Dean Goodman's GoodCo Radio LLC in partnership with Garrison Investment Group LP.
Jim Donahoe, President/CEO of NextMedia Group, said, "Dean Goodman is a veteran broadcaster committed to the long-term future of radio and we are pleased that he will build upon our strategy to provide live and local programing to our respective communities. We thank and congratulate the market employees who have remained committed to our vision and helped grow and position our stations."
Dean Goodman added, "The NextMedia stations have grown in challenging economic environments, which is a credit to Jim Donahoe and his excellent team of broadcast professionals. Our similar operational approach will super-serve local communities with compelling on-air products and innovative digital strategies."
Since 2010, NextMedia has been majority owned and advised by funds of Strategic Value Partners, LLC (collectively, "SVP" or "Strategic Value Partners") and Angelo, Gordon & Co. ("Angelo Gordon"). As NextMedia's largest creditors, SVP and Angelo Gordon helped lead the restructuring of the business and subsequently gained equity ownership of the company when it emerged from Chapter 11. SVP and Angelo Gordon appointed and worked closely with management to improve the company's operations. In late 2012, NextMedia sold its Outdoor Division to Lamar Advertising. The completion of the sale of the 33 radio stations will represent the successful conclusion of SVP and Angelo Gordon's investment in NextMedia.
"Since acquiring control of NextMedia's radio and outdoor advertising assets in early 2010," said Donahoe, "Strategic Value Partners and Angelo Gordon have provided management with the tools and support to grow our core businesses and ultimately facilitate the sale of the company."
Victor Khosla, Founder and Chief Investment Officer of SVP, said: "We are proud of our partnership with NextMedia's management to improve and grow the company's outdoor advertising and radio station assets. We are pleased with the agreement that has been reached with Dean Goodman and Digity and that they will become the radio stations' new steward."
The transaction is subject to satisfaction of customary closing conditions and is expected to close in the first quarter of 2014. NextMedia will continue to operate the 33 radio stations as usual until that time.
NextMedia was represented in the transaction by Schulte Roth & Zabel LLP, Leibowitz & Associates, P.A. and Wilkinson Barker Nauer LLP. Digity was represented in the transaction by Dow Lohnes PLLC.
Digity, LLC is a diversified local media, digital entertainment and event marketing company.
For more information, contact Dean Goodman: DeanGoodman@digity.me.
About Strategic Value Partners
Strategic Value Partners, LLC was founded in 2001 by Victor Khosla and manages approximately $3.4 billion. As of June 1, 2013, the firm had over 100 employees, including 35 investment professionals, across its main offices in Greenwich (CT), London, Frankfurt and Tokyo. SVP's focus is on distressed, deep-value opportunities in middle-market companies where it can typically exert significant influence or, in some circumstances, obtain outright control. SVP typically takes an active role in transactions, whether driving the financial restructuring of companies facing bankruptcy, on ad hoc or formal creditors' committees, or leading the turnaround of a business by driving the strategic and operational direction of the company. For more information, visit www.svpglobal.com.
About Angelo Gordon
Angelo, Gordon & Co. L.P. is a privately held limited partnership founded in November 1988, and currently manages approximately $24 billion. The Firm's investment focus centers around three core competencies - credit, real estate and private equity - and manages capital across five principal areas: (i) distressed debt and leveraged loans, (ii) real estate equity and debt, (iii) residential and commercial mortgage-backed and asset-backed securities, (iv) private equity, and (v) multi-strategy. Angelo Gordon has over 260 employees (100 of whom are investment professionals) and is headquartered in New York, with associated offices in Chicago, Los Angeles, Washington, D.C., London, Amsterdam, Hong Kong, Seoul, Shanghai, Tokyo and Sydney. For more information, visit www.angelogordon.com.
Contact: Jim Donahoe
SOURCE NextMedia Group, Inc.
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