Four Points Sale Brings Nexstar $6.7 Million

Nexstar Broadcasting Group announced Wednesday that it has received a payment of $6.7 million from the $200 million sale of Four Points Media Group, by an affiliate of Cerberus Capital Management, to Sinclair Broadcast Group. The payment is for management and incentive fees earned for 2011 as well as a termination payment.

The sale of the seven stations closed on Jan. 3. The stations are:

• KUTV (CBS) Salt Lake City, Utah (DMA 32)
• KMYU (MNT) Salt Lake City, Utah (DMA 32)
• KEYE (CBS) Austin, Texas (DMA 44)
• WTVX (CW) West Palm Beach-Fort Pierce, Fla. (DMA 38)
• WTCN-CA (MNT) West Palm Beach-Fort Pierce, Fla. (DMA 38)
• WWHB-CA (Azteca) West Palm Beach-Fort Pierce, Fla. (DMA 38)
• WLWC (CW) Providence, R.I.-New Bedford, Mass. (DMA 53)

Approximately $4.7 million of the payment will be recognized in Nexstar’s fourth quarter ended Dec. 31, 2011 and the balance of approximately $2 million will be recognized in the first quarter of 2012 (ending March 31).

Nexstar said it will use the payment made by Cerberus under the management services agreement for debt reduction and general corporate purposes. The management services agreement with Four Points terminated effective with the closing of the sale of its stations to Sinclair on Jan. 3.

Nexstar Broadcasting Group Chairman, President and Chief Executive Officer, Perry A. Sook commented: “The Four Points transaction is the culmination of our efforts on behalf of Cerberus to improve the market position and operating efficiencies of these stations and create value for the group.

“We are confident that under Sinclair’s management, the markets, viewers and advertisers served by these stations will benefit from a continued focus on quality programming and community service.

“We believe the positive outcome from this transaction for Cerberus, Four Points and Sinclair positions us well to enter into other management services agreements.”