iHeartMedia and Lenders Buy a Little More Time. The deadline for the Forbearance Agreement signed on Sunday was last night at midnight. Prior to that deadline however, iHeartMedia and the Consenting Lenders agreed to extend the term of that Forbearance Agreement to next Monday (3/12) at midnight CT. iHeartMedia – seeking to find a long-term solution to its $20 billion debt problem – is past the grace period and, without the Forbearance Agreement, would be in default on a missed $106 million payment on 14% Senior Notes. That default would likely trigger bankruptcy for iHM, but clearly the group of senior creditors are trying to find a way to avoid putting the fate of the company in the hands of a bankruptcy judge. This extension leads some analysts to conclude that some progress is being made toward that end.
Entercom Releases Q4 2017 Financial News. This is the first quarterly report for Entercom Communications Corp. that includes results of the CBS RADIO stations. The merger closed on November 17, 2017. Remember that Entercom issued 101,407,494 Class A shares to former shareholders of CBS Corporation who participated in the exchange. Net revenue for Q4 2017 was $246.6 million, compared to $124.6 million in the fourth quarter of 2016. “Operating income for the quarter was a loss of $2.3 million, which was negatively impacted by $36 million of merger, restructuring, impairment and financing costs. This compared to operating income of $30 million in the fourth quarter of 2016…adjusted EBITDA for the quarter was $45 million, compared to $35.2 million in the fourth quarter of 2016.” The company reports that as of December 31, 2017, it had outstanding $1.4 billion of senior debt under its credit facilities and $400 million in senior notes and $34.2 million in cash on hand. Entercom president and CEO David Field comments, “We are making excellent progress toward our goals of capitalizing on our transformational merger and building a truly outstanding media and entertainment company. As the country’s #1 creator of live, original, local audio content and with a premier collection of outstanding local radio stations, digital platforms and live events, we have the scale and capabilities to compete more effectively with other media for a larger share of ad dollars. We are off to a great start executing our game plan with important achievements in a number of areas including building a best-in-class leadership team and culture, growing our brands and ratings, executing our synergies, launching new sales tools and advocacy, and much more. We are very pleased with our progress and more excited than ever about the needle-moving opportunities ahead.”
Unsecured Creditors Challenge Cumulus Media’s Executive Bonus Structure. A group of Unsecured Creditors – the Official Committee of Unsecured Creditors of Cumulus Media – is formally objecting to Cumulus Media’s executive bonus program in a filing with the U.S. Bankruptcy Court. In the filing, the Committee says, “the Debtors seek authorization to pay millions of dollars in supplemental ‘incentive’ compensation to highly compensated senior executives during an expedited chapter 11 process that, if the Debtors prevail at confirmation, will result in the unsecured creditors of these estates receiving pennies on the dollar. These executives have already received millions in prepetition ‘incentive’ compensation payments (indeed, the Debtors’ CEO has already received over two million dollars in supplemental 2017 incentive payments and is scheduled to receive at least an additional [amount redacted] if the Motion is approved) and stand to benefit from a very robust Management Incentive Plan (the “MIP”) to be implemented upon the Debtors’ emergence from bankruptcy. Moreover, the Debtors seek authorization to implement not one, but two allegedly incentivizing and wholly overlapping programs that both contemplate quarterly cash payments payable upon achievement of the exact same targets and metrics in order to “properly incentivize” those members of management who already stand to gain a substantial economic benefit from obtaining confirmation of the plan and thus implementation of the MIP.” The Committee says the incentive program cannot be allowed and cites three aspects of the U.S. Bankruptcy code that it believes backs its case.
Morning Drive Talk Host Angie Austin Announces Distributor and Rep for New Show. Talk show host Angie Austin – who previously hosted the “Daybreak USA” program on USA Radio Network – has re-branded her program “The Angie Austin Show” and it’s set to be delivered to affiliate stations via Genesis Communications Network with The Show Must Go On! repping the program. Mike Opelka co-hosts the show that is delivered live from 6:00 am to 9:00 am ET. A presser says the show will debut in seven markets.
Judge Cites Lack of Evidence in Complaint Against WGAC, Augusta Talk Host Austin Rhodes. After a complaint from local businessman Joe Mullins suggesting that WGAC, Augusta, Georgia talk host Austin Rhodes’ words on his radio show caused him to become concerned for the safety of himself and his family, a judge has ruled that there is not enough evidence to suggest a crime may have been committed. According to a report by WJBF-TV, Mullins complained to authorities that Rhodes compared him to a snake on his February 27 broadcast and said, “Snakes have to be dispatched or killed.” The story notes that local police listened to a recording of the entire segment provided by Mullins but concluded that there was no direct threat to Mullins.
TALKERS News Notes. Rapid City, South Dakota has a new news/talk station as HomeSlice Media Group flips KKLS-AM/K248BT – both licensed to Rapid City – from classic hits to using syndicated programming. Shows on the station’s program schedule include: Dave Ramsey, Joe Pags, Westwood One’s Mark Levin, Jim Bohannon and Chris Plante, plus others. The schedule does not indicate a morning drive show, leaving open the possibility of a local program…..Entercom and PNC Bank partner to spotlight star high school lacrosse students in the Maryland community. Entercom sports talker WJZ-FM, Baltimore “105.7 The Fan” and its sister stations are taking part in the PNC Achievers program that identifies and recognizes outstanding female and male student lacrosse athletes from public and private schools across the state of Maryland for their success and leadership on and off the field. Entercom Baltimore SVP and market manager Tracy Brandys says, “At Entercom, giving back to our local communities is an important part of what we do and PNC Bank shares these values. We’re excited about this partnership that allows us to shine a light on high school athletes who display exemplary study habits, achieve excellent grades, are active volunteers in the community and mentor other students to help meet their respective goals.”…..University of Alabama Athletics and multi-media rights holder Learfield announce a five-year agreement with SummitMedia for the broadcaster to serve as the official radio home of the Crimson Tide Sports Network in Birmingham…..iHeartMedia’s alternative rock K248CU, Austin “ALT 97.5” signs a deal with MLB’s Houston Astros to serve as the ballclub’s official Austin affiliate. The station will carry all regular and post-season games.
Trump Tariffs Plan, Stormy Daniels Suit, Feds vs California, Trump Russia Investigation, Gun Control, North Korea-South Korea Talks, Russian Double Agent Poisoning, and NBA Action Among Top News/Talk Stories Yesterday (3/7). The Trump Administration’s plan for tariffs on foreign steel and aluminum and the related exit of economic adviser Gary Cohn; porn star Stormy Daniels’ suit for relief from confidentiality agreement with President Trump; Attorney General Jeff Sessions’ suit against California in the sanctuary matter; the investigation into possible connections between Trump campaign operatives and Russian agents; the debate over gun control and Florida’s bill to limit gun ownership to those 21 and over; the talks between North Korea and South Korea over the former’s nuclear program; the apparent poisoning of a former Russian double agent and his daughter in the U.K.; and NBA action were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS magazine.
Cool Job Opportunity. Radio management pro Harvey Wells is looking for a multi-talented operations manager for the Mid-West Family Broadcasting cluster in Springfield, Illinois. He says, “If you know a great talk/mainstream rock/talent coach/radio person, I’m looking for an operations manager to partner with me in the fine state capital of Springfield, Illinois. This is not a ‘rookie’ position. Must be able to do an airshift as well.” Contact Harvey at: email@example.com.
Music Radio News and Career Moves. Chicago’s famed classic rocker “The Loop” isn’t going away completely. With Educational Media Foundation’s LMA of WLUP-FM (soon to have new calls WCKL-FM) to begin Saturday in advance of its purchase of the signal from Merlin Media, Cumulus Media is taking the “Loop” format (sans jocks) and moving it to the HD2 channel of alternative rock WKQX-FM. Of course, that station is also up for sale and it’s likely a buyer will swoop in on this Windy City signal sooner rather than later…..Beasley Media Group announces it is naming Jeff Kurkjian the new morning drive co-host for its country outlet KCYE, Las Vegas “102.7 The Coyote.” Kurkjian, who was most recently morning host at Entercom’s hot AC WQAL, Cleveland “Q104,” is partnering with Aimee Montgomery, who slides over to “The Coyote” from Beasley’s adult contemporary “Lite 101.5 FM.” Kurkjian says, “I am so excited to be part of the team at ‘102.7 The Coyote’ in Las Vegas. I can’t imagine doing anything but local radio. I’m looking forward to connecting every morning with the casino workers getting off third shift, the moms taking their kids to school and everyone in between. I am eager to get out and about in Las Vegas, especially coming from the frozen tundra of the Northeast!”…..iHeartMedia announces the addition of Eminem featuring Kehlani, plus N.E.R.D and G-Eazy to the program of previously announced performers for this Sunday evening’s 2018 iHeartRadio Music Awards…..Entercom’s classic rock KGON, Portland enters into a multi-year agreement with The Waterfront Blues Festival. Some of the highlights of the new partnership include the return of the festival to its original radio broadcast partner and the switch of KGON-HD2 to Waterfront Blues Radio – playing blues music all day. The festival takes place July 4 through 7 at Tom McCall Waterfront Park and this summer’s event marks the 31st anniversary of the festival…..Pictured below are staffers of Cumulus Media’s adult contemporary WMAS-FM, Springfield, Massachusetts and volunteers celebrating the final tally of the WMAS Radiothon benefitting the Children’s Miracle Network and Baystate Children’s Hospital. Vice president and market manager Craig Swimm says, “Extremely proud of the team as we wrap up this year’s 94.7 WMAS Radiothon — $245,367 raised over 2 days. We beat last year’s number and have raised more than $4.5 million for the Children’s Miracle Network since 2002.”