Nexstar Broadcasting Completes Acquisition of Quorum Broadcast Holdings
IRVING, Texas (December 31, 2003) – Nexstar Broadcasting Group, Inc.
(Nasdaq: NXST) today announced that it has completed the acquisition of
all the subsidiaries of Quorum Broadcast Holdings, LLC, which own or
operate 11 television stations (including WTVW, which is under contract
for sale) and provide management, sales or other services to an
additional 5 stations. Giving effect to the transaction, Nexstar enters
9 new mid-size markets, increasing the number of stations the Company
owns, operates or provides services to by 60 percent.
terms of the definitive agreement announced on September 12, 2003,
Nexstar paid total consideration of approximately $230 million through
a combination of cash, shares of its common stock and the assumption or
refinancing of Quorum's debt, net of expected proceeds from the sale of
WTVW. Nexstar financed the transaction with certain proceeds from the
Company's initial public offering of stock completed on November 24,
2003, the private placement of $125.0 million aggregate principal
amount of senior subordinated notes by Nexstar Broadcasting, Inc.,
additional borrowings under the Company's amended senior credit
facility and cash on hand.
"The Quorum acquisition brings us a
highly complimentary portfolio of stations in terms of geographic
reach, market size and a focus on operating multiple stations in a
market," remarked Perry A. Sook, President and CEO of Nexstar
Broadcasting. "Of the nine new markets that we will enter, five will
offer the revenue opportunities and cost saving benefits of a duopoly
"We believe this purchase validates our disciplined
acquisition strategy and emphasis on opportunities that can offer our
shareholders a significant return on investment," continued Mr. Sook.
"We expect the acquisition to be accretive to our financial results,
and we have already begun harvesting substantial cost savings at these
stations since assuming day-to-day operating responsibilities for them
Nexstar also reconfirmed its expectation that the
previously announced transactions to sell WTVW in Evansville, Indiana
for $43.0 million and acquire KPOM and KFAA in Fort
Smith-Fayetteville-Springdale-Rogers, Arkansas are both expected to be
completed during the first quarter of 2004.
About Nexstar Broadcasting Group, Inc.
Broadcasting Group owns, operates, programs or provides sales and other
services to 42 television stations in 26 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 and UPN, and reaches
approximately 7% of all U.S. television households.
Note Regarding Forward-Looking Statements
in this release that are "forward-looking statements" are based upon
current expectations and assumptions, and involve certain risks and
uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995.
Words or expressions such as
"intends", "expects," "expected," "anticipates" or variations of such
words and similar expressions are intended to identify such
forward-looking statements. Key risks are described in the Company's
reports filed with the Securities and Exchange Commission (SEC).
Readers should note that these statements are subject to change and to
inherent risks and uncertainties, and may be impacted by several
factors, including: economic and regulatory changes, the loss of key
personnel, a downturn in the performance of our television stations,
the Company's substantial debt levels, and changes in the broadcast
industry generally. The Company's actual performance and results could
differ materially because of these factors and other factors discussed
in the "Management's Discussion and Analysis of Results of Operations
and Financial Condition" in our SEC filings, including but not limited
to annual reports on Form 10-K or quarterly reports on Form 10-Q,
copies of which can be obtained from the SEC, www.sec.gov, or our website, www.nexstar.tv