The divestitures are designed to comply with FCC ownership caps as Nexstar’s acquisition of Media General awaits commission approval. The stations are WCWJ Jacksonville, Fla.; WSLS Roanoke, Va.; KADN and KLAF-LD Lafayette, La.; and KREG Denver.
Nexstar Selling Five Stations in Four Markets
Nexstar Broadcasting Group today said it will sell five TV stations in four markets to comply with FCC ownership caps as part of its previously announced agreement to acquire Media General. Nexstar said it anticipates announcing additional station divestitures shortly.
Nexstar is selling WCWJ, the CW affiliate in Jacksonville, Fla. (DMA 47), and WSLS, the NBC affiliate in Roanoke-Lynchburg, Va. (DMA 69), to Graham Media Group for $120 million.
In addition, Nexstar will sell KADN (Fox) and KLAF-LD (NBC) Lafayette, La. (DMA 121), to Bayou City Broadcasting Lafayette for $40 million in cash. BCBL is a minority-led broadcaster owned by affiliates of Bain Capital Credit and Bayou City Broadcasting, the latter of which is owned by DuJuan McCoy, who serves as BCBL’s president-CEO.
Nexstar also is selling KREG Denver (DMA 17) to Marquee Broadcasting. Marquee and its affiliates, a woman-owned broadcast group that owns three TV stations in Maryland, Georgia and Delaware, is led by Patricia R. Lane. KREG currently operates as a satellite station of Nexstar-owned CBS affiliate KREX and, upon consummation of the sale, will no longer operate as a satellite of KREX.
On Jan. 27, Nexstar and Media General entered into a definitive merger agreement whereby Nexstar will acquire all outstanding shares of Media General. Nexstar said the planned divestiture of WCWJ, WSLS, KADN, KLAF-LD and KREG are the initial transactions as part of Nexstar’s stated intention to divest certain television stations in order to comply with the FCC local and national television ownership rules and to obtain FCC and Department of Justice approval of the proposed deal.
The sale of WCWJ and WSLS to Graham Media and the sale of KADN and KLAF-LD to BCBL are subject to the closing of the Nexstar-Media General transaction.
Nexstar said the Graham Media, BCBL and Marquee proposed station sales are subject to FCC approval, other regulatory approvals and other customary closing conditions, and are expected to be completed on, or about the time of, the closing of the Nexstar-Media General transaction, which is expected later this year.
Wells Fargo Securities was the lead financial advisor and Deutsche Bank Securities was co-advisor for Nexstar in connection with the proposed station sales. MMTC Media and Telecom Brokers served as a co-broker for the transactions. Kirkland & Ellis was legal counsel for Nexstar and Fried, Frank, Harris, Shriver & Jacobson was legal counsel for Media General. Covington & Burling was legal counsel for Graham Media. Proskauer Rose was legal counsel for Bayou City Broadcasting Lafayette.