Emmis pulls the trigger on the sale of Spanish Hits KXOS/Los Angeles to qualified designees of Mexico City-based Grupo Radio Centro. The price is $85.5 million, most of which will go to pay down Emmis debt.
Emmis recently announced it was negotiating to further extend the recently expired provision of the put and call agreement that gave GRC the right to buy the station for the $85.5 million figure -- after the August 8 deadline passed, the price was set to go up to $110 million, but the companies said at the time that they were still negotiating. According to an SEC filing, on August 20, that part of the agreement was extended through August 23, and now the sale has been made.
The original seven-year LMA gave GRC the right to purchase the station for $110 million during that term or for Emmis to require GRC to purchase the station for that amount when the term expired. But earlier this year Emmis and GRC adjusted the deal to offer the reduced price if a deadline was met.