Could they take on $110 M (US) in debt, bring total equity up to around $200 M (again US), and not be considered to be too leveraged? I guess it depends on what kind of interest rate they'd have to pay to borrow $110 M. But I would imagine, if the financial results keep improving as strongly as they have been, if the founding family were to personally guarantee a borrowing, I would think the rate could be very low.
I hadn't realized just how much things were improving at Grupo Radio Centro. (This, of course, is the company that is committed to [eventually] buy EMMS's LA station for $110 million.)
Hey LTF - Thanks for asking Jeff about the Merlin-Grupo news article on the CC yesterday. Smulyan said that Grupo was free to sell or transfer its LMA and rights to buy the LA Emmis property (for $110MM) to anyone. You confirmed this with Emmis on the CC.
Reading between the lines, I would say that Emmis is eager to receive the $110MM for its LA property, reduce debt and bring the share price above $1. They have a great relationship with Merlin. Perhaps, they would be only too happy to see the LA property transferred from Grupo to Merlin.
I just don't see it with him having the controlling vote if they get control of the pfd's. And please don't give me the line of him not wanting to shaft himself since he owns the A common. The other interesting thing is the claim that the pfd owners wanted liquidity which is why they made the tender, and yet the board member appointed by the pfd's was the one to vote against the tender.
Certainly not me. The white flag has been waved to Zazaove & Co., at this point, as far as I'm concerned. They're probably buying up every single share of pfd, at this point, to "guarantee" EMMS does get to 66 2/3%.
Good to hear in the conf call that EMMS is talking to them; they need to be.