DMAS 68 & 101

Gray Buying Two Nexstar Spinoffs For $270M

It is acquiring ABC affiliate WBAY Green Bay, Wis., and NBC affil KWQC Davenport, Iowa, both currently owned and operated by Media General that are being divested as part of the Nexstar-Media General merger.

 

Gray Television is spending $270 million to boost its station portfolio, buying two stations that Nexstar Broadcasting Group is divesting to make way for its pending merger with Media General.

Gray is acquiring WBAY (ABC), in Green Bay, Wis. (DMA 68), and KWQC (NBC) Davenport, Iowa (DMA 101), both currently owned and operated by Media General.

The addition of these two mid-market stations, Gray said, will be immediately free cash flow accretive while also allowing Gray to further deleverage its balance sheet. Gray will acquire WBAY and KWQC concurrently with the closing of the Nexstar/Media General merger, which the parties anticipate will occur in the fourth quarter of 2016.

According to Nielsen and BIA data, WBAY is the highest rated and top-grossing television station in the Green Bay DMA. Gray noted that in Wisconsin and the Upper Peninsula of Michigan, Gray owns the top-grossing stations serving Madison (WMTV/NBC), Eau Claire-Lacrosse (WEAU/NBC), Wausau-Rhinelander (WSAW/CBS and WZAW/Fox), and Marquette, Michigan (WLUC/NBC/FOX).

Likewise, Gray said, Nielsen and BIA data identify KWQC as the highest rated and top-grossing television station in the Davenport-Rock IslandMoline DMA (also known as the Quad Cities DMA).

KWQC, which has been the top-rated television station in its market for over 35 years, will be Gray’s third television station serving Iowa, joining WOWT (NBC) in Omaha and KCRG (ABC) in Cedar Rapids. The Davenport station and Gray’s Rockford station (WIFR/CBS) cover all of northwestern Illinois.

BRAND CONNECTIONS

“We are thrilled to be selected as the new owners of WBAY and KWQC,” said Hilton H. Howell, Jr., Gray’s chairman-CEO. “Gray came to admire these stations many years ago when we provided management consulting services to their former owner, Young Broadcasting, prior to its merger with Media General. The potential regional synergies between these two legacy institutions and our existing stations in Wisconsin and Illinois appear to be even more promising now that we have recently acquired the dominant television stations in the adjacent television markets of Cedar Rapids and Marquette. We are also delighted to add two strong market leading stations in the historically strong political revenue states of Iowa and Wisconsin.”

Gray said that including expected operational synergies, the stations are expected to produce two-year blended broadcast cash flow margins greater than 50%. In addition, the acquisition will be immediately free cash flow accretive to Gray as well as allowing Gray to continue to de-lever to historic lows.

The transaction has been structured to deliver significant tax savings to Gray, including a step-up in the tax basis of the acquired assets. Including expected operational synergies, the transaction represents an attractive purchase price multiple of approximately 8.0 times blended 2015- 2016 pro forma broadcast cash flow.

Gray said the multi-year tax advantages to Gray “further reduces our purchase multiple. The weighted average purchase price multiple of the WBAY/KWQC acquisition, the Schurz acquisition and related transactions consummated earlier this year, and the pending Clarksburg acquisition approximates 7.3 times the blended average of the 2015-2016 pro forma broadcast cash flow of the television stations covered by those transactions.”

Gray said it has the capacity to close the transaction primarily through the use of cash on hand at closing and, if then necessary, availability under its existing senior credit facilities.

In addition, Gray said it may also consider opportunistically accessing the debt markets. Expected strong free cash flow generation through the closing of the transaction and throughout 2016 should continue Gray’s recent success in achieving considerable de-levering of its capital structure.

Assuming a year-end closing of this transaction; no further acquisitions; no capital returns to shareholders; no receipt of FCC spectrum auction proceeds; and no increase in pro forma 2016 political advertising revenue over that of pro forma 2012, we anticipate ending 2016 with a historically low total leverage ratio, net of cash, in the range of 4.5 to 4.7 times on a trailing eight-quarter basis.

Cooley LLP served as legal counsel for Gray.


Comments (58)

Leave a Reply

zvodretiluret says:

July 24, 2018 at 3:26 am

F*ckin¦ amazing issues here. I am very happy to peer your post. Thank you a lot and i am having a look forward to touch you. Will you kindly drop me a e-mail?

khu du lich trương huy says:

July 27, 2018 at 5:54 am

Excellent post. I was checking constantly this blog and I am impressed! Extremely helpful information particularly the last part 🙂 I deal with such info much. I used to be looking for this certain information for a long time. Thank you and good luck.

airasia dhaka sales office says:

July 27, 2018 at 11:06 am

Your style is so unique compared to many other people. Thank you for publishing when you have the opportunity,Guess I will just make this bookmarked.2

frases empreendedoras says:

July 27, 2018 at 3:46 pm

I just could not depart your site prior to suggesting that I actually enjoyed the standard info a person provide for your visitors? Is gonna be back often in order to check up on new posts

how to submit a patent says:

July 27, 2018 at 8:17 pm

Can I just say what a relief to find someone who actually knows what theyre speaking about on the internet. You definitely know how you can bring an issue to light and make it important. Extra individuals have to read this and understand this side of the story. I cant believe youre not more popular because you undoubtedly have the gift.

Studio Auteur says:

July 28, 2018 at 3:08 pm

We’re a group of volunteers and starting a new scheme in our community. Your web site offered us with valuable info to work on. You’ve done an impressive job and our entire community will be grateful to you.

percocet online says:

July 30, 2018 at 5:21 am

Good write-up, I?¦m normal visitor of one?¦s web site, maintain up the excellent operate, and It’s going to be a regular visitor for a lengthy time.

Tips Certification says:

July 30, 2018 at 10:19 am

Hey there! I know this is somewhat off topic but I was wondering which blog platform are you using for this site? I’m getting tired of WordPress because I’ve had problems with hackers and I’m looking at alternatives for another platform. I would be awesome if you could point me in the direction of a good platform.

web page says:

July 31, 2018 at 8:58 am

Hey! Someone in my Facebook group shared this site with us so I came to look it over. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Superb blog and great style and design.

tow truck Scottsdale says:

July 31, 2018 at 2:17 pm

Wow! Thank you! I continuously wanted to write on my site something like that. Can I implement a fragment of your post to my blog?

http://cassandranorri.tumblr.com/post/176263571406/have-you-had-that-eureka-moment-if-so-inventhelp says:

August 1, 2018 at 9:22 am

Way cool, some valid points! I appreciate you making this article available, the rest of the site is also high quality. Have a fun.

https://lucillecaballero490735419.wordpress.com/2018/07/27/got-an-idea-shape-your-future-with-assistance-from-inventhelp/ says:

August 1, 2018 at 3:10 pm

Hey there, I think your blog might be having browser compatibility issues. When I look at your blog in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, superb blog!

http://sheila.lankaherald.com/turn-your-ideas-into-reality/ says:

August 3, 2018 at 5:22 am

Whats up very cool site!! Man .. Excellent .. Superb .. I will bookmark your blog and take the feeds alsoKI am glad to search out so many helpful information here within the post, we need develop more strategies in this regard, thank you for sharing. . . . . .

www.lao88.co says:

August 3, 2018 at 8:43 pm

Yesterday, while I was at work, my sister stole my iphone and tested to see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!

concrete patio repair says:

August 4, 2018 at 10:40 am

Howdy very cool blog!! Guy .. Beautiful .. Superb .. I’ll bookmark your web site and take the feeds additionally…I am satisfied to search out a lot of useful information right here within the publish, we’d like work out more strategies in this regard, thanks for sharing.

average car insurance cost by age says:

August 4, 2018 at 3:50 pm

I’ve been absent for a while, but now I remember why I used to love this blog. Thank you, I will try and check back more often. How frequently you update your site?

tips to pay less on car insurance says:

August 4, 2018 at 9:27 pm

I definitely wanted to type a simple remark to express gratitude to you for some of the fantastic instructions you are giving on this site. My considerable internet lookup has at the end of the day been recognized with sensible content to write about with my neighbours. I ‘d point out that we website visitors actually are undoubtedly lucky to dwell in a good website with very many wonderful people with valuable tricks. I feel somewhat privileged to have used your entire web page and look forward to some more excellent times reading here. Thank you again for everything.

True First Series says:

August 4, 2018 at 10:18 pm

Really wonderful information can be found on weblog.

Thomas says:

August 5, 2018 at 8:04 am

Hello! I’ve been reading your web site for a long time now and finally got the courage to go ahead and give you a shout out from Humble Tx! Just wanted to tell you keep up the excellent work!

auto.us says:

August 5, 2018 at 8:21 am

I like what you guys are up too. Such smart work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it will improve the value of my web site 🙂

average annual home insurance cost calculator says:

August 5, 2018 at 2:12 pm

I like this blog very much, Its a rattling nice situation to read and receive information. “The superior man is modest in his speech, but exceeds in his actions.” by Confucius.

average home insurance cost in michigan says:

August 5, 2018 at 7:47 pm

Can I simply say what a relief to seek out somebody who really is aware of what theyre speaking about on the internet. You definitely know how to deliver a difficulty to gentle and make it important. Extra folks need to read this and understand this facet of the story. I cant believe youre not more popular because you undoubtedly have the gift.

home & auto insurance in usa says:

August 6, 2018 at 1:28 am

Hi, i think that i saw you visited my website so i came to “return the favor”.I’m trying to find things to improve my web site!I suppose its ok to use a few of your ideas!!

Oprah Winfrey says:

August 6, 2018 at 4:07 am

I and my buddies ended up checking out the nice key points on your website and then quickly developed a terrible suspicion I never thanked you for them. All of the boys are already absolutely happy to study them and already have pretty much been making the most of them. Thank you for actually being indeed accommodating and also for settling on these kinds of fabulous subject matter millions of individuals are really eager to discover. My very own sincere regret for not expressing gratitude to you earlier.

what type of homeowners insurance do i need says:

August 6, 2018 at 6:55 am

Nice weblog here! Additionally your web site rather a lot up fast! What web host are you the use of? Can I am getting your associate link for your host? I desire my site loaded up as fast as yours lol

appliances home insurance says:

August 6, 2018 at 11:55 am

Some truly great articles on this web site, regards for contribution.

Wilson says:

August 6, 2018 at 1:03 pm

Very interesting points you have noted, thanks for putting up.

benefits of having home insurance says:

August 6, 2018 at 5:24 pm

Hello very nice website!! Guy .. Beautiful .. Wonderful .. I’ll bookmark your site and take the feeds additionally…I’m glad to find so many helpful info here in the publish, we need work out more techniques in this regard, thanks for sharing. . . . . .

True First Series says:

August 6, 2018 at 10:18 pm

I adore examining and I believe this website got some truly utilitarian stuff on it! .

Harkness says:

August 6, 2018 at 11:00 pm

Magnificent beat ! I would like to apprentice at the same time as you amend your site, how can i subscribe for a weblog site? The account aided me a applicable deal. I were tiny bit acquainted of this your broadcast offered vibrant clear concept

xxx partner says:

August 7, 2018 at 4:13 am

very good publish, i definitely love this web site, carry on it

edwardsragatz says:

August 7, 2018 at 9:53 am

With havin so much content and articles do you ever run into any problems of plagorism or copyright infringement? My site has a lot of exclusive content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my permission. Do you know any techniques to help reduce content from being stolen? I’d certainly appreciate it.

what is adderall says:

August 7, 2018 at 3:35 pm

Nice post. I study one thing more difficult on totally different blogs everyday. It’s going to all the time be stimulating to read content material from different writers and apply a bit of something from their store. I’d favor to use some with the content on my weblog whether or not you don’t mind. Natually I’ll offer you a link in your internet blog. Thanks for sharing.

http://www.pearltrees.com/davidryann/inventhelp-startups/id21196959/item230289273 says:

August 7, 2018 at 3:48 pm

I will right away grasp your rss as I can’t find your email subscription link or e-newsletter service. Do you have any? Please allow me recognise so that I may subscribe. Thanks.

inventhelp office locations says:

August 8, 2018 at 3:40 am

Hey! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iphone4. I’m trying to find a template or plugin that might be able to resolve this issue. If you have any suggestions, please share. Many thanks!

Stock market crash 2018 says:

August 8, 2018 at 8:20 am

I really like studying and I think this website got some truly utilitarian stuff on it! .

Mass Psychology says:

August 8, 2018 at 2:04 pm

As soon as I discovered this site I went on reddit to share some of the love with them.

Stock Market Bull 2018 says:

August 8, 2018 at 7:38 pm

Wow that was unusual. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say superb blog!

Mass Psychology says:

August 9, 2018 at 1:17 am

You have observed very interesting points! ps nice internet site.

Is value investing dead says:

August 9, 2018 at 6:56 am

Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.

The cholesterol hoax says:

August 9, 2018 at 12:30 pm

Heya i am for the first time here. I came across this board and I to find It truly useful & it helped me out much. I’m hoping to give something back and aid others such as you aided me.

Stock Market Bull 2018 says:

August 9, 2018 at 5:59 pm

Oh my goodness! an amazing article dude. Thanks Nonetheless I am experiencing situation with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting similar rss drawback? Anybody who knows kindly respond. Thnkx

Stock Market Bull 2018 says:

August 9, 2018 at 11:36 pm

Hello there, just became alert to your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I will be grateful if you continue this in future. Numerous people will be benefited from your writing. Cheers!

Is value investing dead? says:

August 10, 2018 at 5:16 am

I carry on listening to the rumor speak about receiving free online grant applications so I have been looking around for the finest site to get one. Could you tell me please, where could i acquire some?

Market crash 2018 says:

August 10, 2018 at 11:05 am

I know this if off topic but I’m looking into starting my own blog and was curious what all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 certain. Any suggestions or advice would be greatly appreciated. Many thanks

about flipkart says:

August 11, 2018 at 4:03 am

Awsome site! I am loving it!! Will come back again. I am taking your feeds also.

buy anabolic steroids says:

August 11, 2018 at 5:21 pm

I was studying some of your articles on this internet site and I believe this site is rattling informative! Keep on putting up.

criador de video online says:

August 11, 2018 at 10:57 pm

I want to convey my passion for your generosity giving support to men and women that really need assistance with your issue. Your personal dedication to getting the solution around came to be extremely good and have regularly empowered many people just like me to achieve their desired goals. The informative key points can mean so much to me and far more to my office workers. Best wishes; from each one of us.

film 4k stream says:

August 13, 2018 at 6:55 am

Howdy very cool blog!! Guy .. Beautiful .. Wonderful .. I will bookmark your site and take the feeds additionally?KI am happy to seek out so many helpful information here within the publish, we want work out extra strategies in this regard, thanks for sharing. . . . . .

Vibrador Jack Rabbit says:

August 14, 2018 at 7:06 am

When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!

https://brandiarmstrong978264737.wordpress.com/tag/inventhelp-corporate-headquarters/ says:

August 15, 2018 at 2:54 am

I do not even know how I finished up right here, however I believed this post was once great. I do not recognize who you’re however certainly you are going to a well-known blogger in case you are not already 😉 Cheers!

how to patent an invention says:

August 15, 2018 at 11:00 am

You made a few fine points there. I did a search on the issue and found the majority of people will go along with with your blog.

buy t shirts online says:

August 17, 2018 at 4:01 am

Hey! Do you use Twitter? I’d like to follow you if that would be ok. I’m undoubtedly enjoying your blog and look forward to new updates.

useful content says:

August 17, 2018 at 9:33 am

Howdy very cool web site!! Guy .. Beautiful .. Wonderful .. I will bookmark your site and take the feeds also…I am glad to find numerous useful info right here within the post, we need work out more techniques on this regard, thanks for sharing.

hạt xốp màu tphcm says:

August 19, 2018 at 7:24 am

I just couldn’t depart your website prior to suggesting that I actually enjoyed the standard info a person provide for your visitors? Is gonna be back often in order to check up on new posts

pillow cases says:

August 19, 2018 at 1:42 pm

I dugg some of you post as I cogitated they were handy handy

dây nối macbook says:

August 19, 2018 at 7:44 pm

Thank you for sharing with us, I think this website truly stands out : D.


More News