Chancellor Corp. announces pricing of initial public offering; Chancellor Broadcasting prices issue of 9-3/8% senior subordinated notes due 2004; Chancellor Broadcasting announces successful completion of consent solicitation.DALLAS--(BUSINESS WIRE)--Feb. 9, 1996--Chancellor Corp. announced today that its public offering of 6,700,000 shares of Class A Common Stock has become effective. The offering price of the shares is $20.00 per share. The Class A Common Stock will trade in the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market under the symbol "CBCA CBCA Centro Brasileiro da Construção em Aço CBCA Canadian Business Corporations Act CBCA Calgary Birth Control Association CBCA Charlotte Builders and Contractors Association CBCA Chilled Beam and Ceiling Association ". Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc., CS First Boston First Boston Corporation was a New York-based investment bank, founded in 1932 and acquired by Credit Suisse in 1988, when it became 'CS First Boston'. Globally referred to as Credit Suisse First Boston after 1996, the First Boston part of the name was phased out in 2006. , Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. & Co. and BT Securities Corp. were the lead underwriters for the offering. In a related transaction, Chancellor announced that the Securities and Exchange Commission declared effective the registration statement of Chancellor's operating subsidiary, Chancellor Broadcasting Co., for a public offering of $200,000,000 principal amount of senior subordinated notes due 2004. The notes were priced with a coupon of 9-3/8% per annum Per annum Yearly. . BT Securities Corp. and Smith Barney Inc. were the underwriters for the note offering. Chancellor also announced the successful completion of the solicitation of consents to proposed amendments to the indenture governing Chancellor Broadcasting's outstanding issue of 12-1/2% senior subordinated notes due 2004. The company received the requested consents from the holders of the entire $80,000,000 principal amount of outstanding notes. "We are delighted with the success of our common stock and debt offerings," said Steven Dinetz, Chancellor Corp. and Chancellor Broadcasting's president and chief executive officer. "With the passage of the Telecommunications Act of 1996, we believe that the radio broadcasting industry will undergo significant changes and we look forward to the opportunities for growth that have been created." The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the common public offering, together with the net proceeds of the note offering and of a concurrent $100,000,000 private placement of exchangeable redeemable preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of Chancellor Broadcasting and borrowings under Chancellor Broadcasting's new credit facility will be used to fund the $395.0 million purchase price for the previously announced acquisition of Shamrock Broadcasting and to repay Chancellor Broadcasting's current credit facility. With the acquisition of Shamrock Broadcasting, the company will be the third largest company in the United States exclusively devoted to radio broadcasting and the fifth largest radio broadcasting company overall, based on 1994 net revenues. The company will own 33 stations (21 FM and 12 AM) located in 15 of the 40 largest metropolitan statistical areas in the country, including seven of the top ten such areas. The company's markets include New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Los Angeles, San Francisco, Atlanta, Riverside-San Bernardino (California), Minneapolis-St. Paul, Nassau-Suffolk (Long Island, New York), Phoenix, Pittsburgh, Denver, Cincinnati, Sacramento and Orlando. Chancellor was formed in 1994 by Steven Dinetz in association with Hicks, Muse, Tate & Furst Inc. to pursue acquisitions in the radio broadcast industry. CONTACT: Chancellor Broadcasting Company Steven Dinetz, 214/239-6220 |
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