New York, September 04, 2013 -- Moody's Investors Service ("Moody's") said Cumulus Media Inc. (B2 stable) recently announced it would acquire Dial Global, Inc. (not rated) for $260 million (10.1x EBITDA pre-synergies, or 3.9x EBITDA after planned synergies). Dial Global is the second largest radio network programmer with revenues of $217 million and provides news, sports, prep, talk and music programming among other services. Financing for the cash purchase will come largely from the announced sale of 53 stations in 12 small to mid-sized markets to Townsquare Radio LLC (B2 stable) for roughly $238 million (7.3x EBITDA, including working capital adjustments). In addition, Cumulus plans to exchange another 15 of its stations in two small and mid-sized markets for five stations in Fresno, CA (market rank #68) from Townsquare Radio. The acquisition of Dial Global adds to Cumulus' existing radio network operations and results in no immediate change in ratings given debt-to-EBITDA ratios remain high (7.2x as of June 30, 2013, pro forma for the transaction, including Moody's standard adjustments).

Vollständigen Artikel bei Moodys lesen