Townsquare Media Sells 43 Radio Towers

Townsquare Media, Inc. today announced that it has entered into an agreement to sell 43 towers to a subsidiary of Vertical Bridge Holdings, LLC for approximately $22.8 million in cash, subject to closing adjustments.

The Company will retain ownership of more than 250 towers following the Tower Sale.

“We are very excited to complete this transaction which will allow us to unlock capital sequestered in non-strategic tower assets at an attractive valuation level”

“We are very excited to complete this transaction which will allow us to unlock capital sequestered in non-strategic tower assets at an attractive valuation level,” commented Townsquare Chairman and Chief Executive Officer Steven Price.

The 43 towers being divested are located on 41 sites in 28 markets and presently house antenna which broadcast certain of the Company’s radio stations, together with third party tenants who pay rent for similar space on such towers. For a period of 35 years following the closing, including an initial term of twenty years and three optional five-year renewal periods, the Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. The Company has also entered into an agreement with Vertical Bridge whereby Vertical Bridge will serve as the exclusive marketing agent for the towers retained by the Company.

The Tower Sale will reduce the Company’s annual net revenue and Adjusted EBITDA by approximately $1.5 million and $1.3 million, respectively.

Alex Gellman, Vertical Bridge Chief Executive Officer commented: “We are excited to be working again with the team at Townsquare Media. With over 250 managed sites and 43 owned towers, this transaction adds over 300 high quality towers in great locations to our growing portfolio of owned and managed towers, including a strong rent roll of third party tenants.”