Cumulus Media Inc. (CMLS, Financial) filed Annual Report for the period ended 2010-12-31.
Cumulus Media Inc. has a market cap of $195.02 million; its shares were traded at around $4.64 with a P/E ratio of 6.27 and P/S ratio of 0.76. Cumulus Media Inc. had an annual average earning growth of 11.9% over the past 10 years.
In addition, the July 2010 Amendment grants us additional flexibility under the Credit Agreement to, among other things, (i) consummate an asset swap of our radio stations in Canton, Ohio for radio stations in the Ann Arbor, Michigan and Battle Creek, Michigan markets owned by Capstar Radio Broadcasting Partners, Inc. (Capstar) but currently operated by us pursuant to LMAs; (ii) subject to certain conditions, acquire up to 100% of the equity interests of CMP or two of its subsidiaries, CMP Susquehanna Holdings Corp. (CMPSC) or CMP Susquehanna Radio Holdings Corp. (Radio Holdings); (iii) subject to certain conditions and if necessary in order that certain of CMPs subsidiaries maintain compliance with applicable debt covenants, make further equity investments in CMP, in an aggregate amount not to exceed $1.0 million; and (iv) enter into sale-leaseback transactions with respect to communications towers that have an aggregate fair market value of no more than $20.0 million, so long as the net proceeds of such transaction are used to repay indebtedness under our term loan facility.
Based on the closing price of our common stock on January 28, 2011 (the last trading day prior to announcement of the transaction), the implied enterprise value of CMP is approximately $740.0 million, which includes an estimated $660.0 million of CMP net debt and preferred stock as of December 31, 2010. This represents a valuation of approximately 7.8 times CMPs estimated 2011 Station Operating Income. This transaction will not trigger any change of control provisions in our Credit Agreement or in CMPs credit agreement or bond indentures.
In connection with entering into the Merger Agreement, we have obtained commitments for up to $500 million in equity financing and commitments for up to $2.525 billion in senior secured credit facilities and $500 million in senior note bridge financing, the proceeds of which will be used to pay the cash portion of the Merger consideration in the Merger, and to effect a refinancing of the combined entity (the Company, CMP and Citadel). Final terms of the debt financing will be set forth in definitive agreements relating to such indebtedness.
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Cumulus Media Inc. has a market cap of $195.02 million; its shares were traded at around $4.64 with a P/E ratio of 6.27 and P/S ratio of 0.76. Cumulus Media Inc. had an annual average earning growth of 11.9% over the past 10 years.
Highlight of Business Operations:
The aggregate market value of the registrants outstanding voting and non-voting common stock held by non-affiliates of the registrant as of June 30, 2010, the last business day of the registrants most recently completed second fiscal quarter, was approximately $49.5 million, based on 18,545,803 shares outstanding and a last reported per share price of Class A Common Stock on the NASDAQ Global Select Market of $2.67 on that date. As of March 4, 2011, the registrant had outstanding 42,522,783 shares of common stock consisting of (i) 36,068,721 shares of Class A Common Stock; (ii) 5,809,191 shares of Class B Common Stock; and (iii) 644,871 shares of Class C Common Stock.In addition, the July 2010 Amendment grants us additional flexibility under the Credit Agreement to, among other things, (i) consummate an asset swap of our radio stations in Canton, Ohio for radio stations in the Ann Arbor, Michigan and Battle Creek, Michigan markets owned by Capstar Radio Broadcasting Partners, Inc. (Capstar) but currently operated by us pursuant to LMAs; (ii) subject to certain conditions, acquire up to 100% of the equity interests of CMP or two of its subsidiaries, CMP Susquehanna Holdings Corp. (CMPSC) or CMP Susquehanna Radio Holdings Corp. (Radio Holdings); (iii) subject to certain conditions and if necessary in order that certain of CMPs subsidiaries maintain compliance with applicable debt covenants, make further equity investments in CMP, in an aggregate amount not to exceed $1.0 million; and (iv) enter into sale-leaseback transactions with respect to communications towers that have an aggregate fair market value of no more than $20.0 million, so long as the net proceeds of such transaction are used to repay indebtedness under our term loan facility.
Based on the closing price of our common stock on January 28, 2011 (the last trading day prior to announcement of the transaction), the implied enterprise value of CMP is approximately $740.0 million, which includes an estimated $660.0 million of CMP net debt and preferred stock as of December 31, 2010. This represents a valuation of approximately 7.8 times CMPs estimated 2011 Station Operating Income. This transaction will not trigger any change of control provisions in our Credit Agreement or in CMPs credit agreement or bond indentures.
In connection with entering into the Merger Agreement, we have obtained commitments for up to $500 million in equity financing and commitments for up to $2.525 billion in senior secured credit facilities and $500 million in senior note bridge financing, the proceeds of which will be used to pay the cash portion of the Merger consideration in the Merger, and to effect a refinancing of the combined entity (the Company, CMP and Citadel). Final terms of the debt financing will be set forth in definitive agreements relating to such indebtedness.
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