Thursday, June 25, 2020

DC Radio: Cumulus Closes On Sale of WMAL Transmitter Site

Cumulus Media Inc. Tuesday announced that it has closed on the sale of an approximately 75-acre parcel of land in Bethesda, Maryland to Toll Brothers, continuing to execute on its commitment to reducing net leverage.

Former WMAL-AM Transmitter Site To Be Developed For Housing
Mary G. Berner, President and Chief Executive Officer of CUMULUS MEDIA, said, “Given the difficult operating environment, our ability to continue to strengthen our balance sheet with the proceeds of this deal is particularly meaningful, and we greatly appreciate the efforts of Toll Brothers in working with us to bring this five-year effort to completion.”

The sale generated gross proceeds of $74.1 million, $5.0 million of which had been received in 2019, and expected net proceeds of $71.3 million after transaction fees and expenses.  The Company anticipates achieving minor expense savings from the elimination of real estate taxes after the closing and does not expect any tax liability as it relates to the transaction. Net proceeds from the sale are required to be used to pay down debt, unless otherwise reinvested in the Company’s business over the next 12 months.

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