As part of a new deal with its lenders, Emmis Communications must divest at least $80 million worth of properties by January 18, 2018 and close by July 18, 2018.
As reported by Tom Taylor Now, Emmis’ decision to divest assets will allow the company to amend its 2014 credit agreement in order to help lower its leveraged ration down to 4x cash flow. These moves followed Emmis CEO Jeff Smulyan’s failed attempt to privatize the company and sales of its Terre Haute IN radio properties and all but one magazine in its publishing division. Emmis had also announced its intent to sell Gospel 1190 WLIB New York in 2016, but as of yet as not done so.
Emmis currently owns Urban “Power 106” 105.9 KPWR Los Angeles, four stations in New York (including 98.7 WEPN-FM which is in a long term lease to Disney’s ESPN Radio), four FMs in St. Louis, 1 AM 3 FMs and a magazine in Indianapolis, 50.1% of Emmis Austin and its 1 AM and 5 FMs in that market, the NextRadio app and its adjoining TagStation data service, and pricing analytics service Digonex Technologies.