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Entravision Communications Corporation Message Board

  • outpissed outpissed Mar 21, 2013 11:12 AM Flag

    Salem Communications Refinanced at a great rate

    Salem communications just refinanced their 9%+ bonds at very favorable rates. As a result cash flow is greatly improved and they immediately announced a huge dividend increase while simultaneously increasing their coverage of the new high dividend and ability to build cash. Salem communication is focused on conservative talk radio and has had minimal growth and minimal growth prospects.

    EVC has significantly higher EBITDA and significantly higher 2012 growth and much better growth prospects with its Hispanic market leadership, the world cup and election in 2014, and a primary focus on television and being the largest Univision affiliate as well as their diversification into alternatives like the new Latino Fox network. EVC should refinance in the next several months (by August) and by all accounts they should have an even more favorable cost of capital upon refinancing.

    It is very interesting how extremely low EVC's valuation is when compared to the $10+ range during previous periods of favorable financing. Given the growth prospects are greatly improved by demographics and Hispanic wealth since those prior $10 years and now is well proven by the political importance of Latinos, EVC could be worth much more than it was previously...

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