Nassau restructures to get out of debt
Nassau Broadcasting, which owns several radio stations in Maine, including Frank FM and WBACH, has filed a restructuring agreement with the Federal Communications Commission that will have its lenders take 85% control of all its stations, according to the Internet-based trade publication Radio Business Report.
The restructuring allows Princeton, N.J.-based Nassau to recover from a debt-fueled buying spree before the recession cut into its advertising revenue. Under the agreement, Nassau's senior lenders -- Goldman Sachs, P.E. Capital, Spire Capital and RTV Ventures -- will swap most of the debt they hold for complete ownership of WCRB FM in Boston and 85% of all other Nassau stations, the trade publication reported. Nassau will also divest itself of WHXR FM in Portland and two New Hampshire stations because of FCC local ownership rules that were not in place before Nassau bought those stations.
The remaining 51 stations will continue to operate as Nassau Broadcasting, with the lenders as 85% equity owners. The remaining 15% ownership in the company will be split between its CEO Louis Mercatanti and its senior managers, according to the publication.
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