NEW YORK – Radio group Chancellor Broadcasting Co. is raising $200 million in two preferred stock offerings, helping to finance two recent acquisitions, it said Friday.
Chancellor has also arranged a new $475 million credit facility to both refinance its existing debt and provide $150 million in revolving credit for future acquisitions, Chancellor chief financial officer Jacques Kerrest said.
Chancellor recently announced the acquisition of eight radio stations from OmniAmerica Group for $178 million and the acquisition of 12 stations from Colfax Communications Inc. for $365 million. It is reducing the cost of the deals by $92 million in sales of some of the stations, bringing the net cost of the two deals down to $451 million.
Together with the new credit facility, the preferred stock offerings will cover the cost of the acquisition and replace $100 million of bank debt already on Chancellor’s balance sheet. Chancellor stock closed up $1.43 to $25.31 Friday.