The stations acquired by Barrington include five NBC affiliates (WNWO-TV, Toledo, OH; WSTM-TV, Syracuse, NY; WPBN-TV and WTOM-TV, Traverse City-Cheboygan, MI; and WLUC-TV, Marquette, MI), three FOX affiliates (WACH-TV, Columbia, SC; KXRM-TV, Colorado Springs, CO; and WFXL-TV, Albany, GA), two UPN affiliates that will become CW affiliates in the fall (WSTQ, Syracuse, NY and KXTU, Colorado Springs, CO), one CBS affiliate (KGBT-TV, Harlingen, TX) and one ABC affiliate (KTVO-TV, Kirksville, MO).
In making the joint announcement, K. James Yager, Chief Executive Officer of Barrington stated, "This mix of strong local stations blended with stations poised for significant growth represents a great opportunity for Barrington. Today starts a new chapter in the history of our company. Our management team under the guidance of Chris Cornelius and Warren Spector have been looking forward to welcoming these new stations and their employees into our operations for quite some time, and we're very excited that this day is here."
Paul McTear, Raycom President and CEO, added that "these are wonderful stations in great markets. We are fortunate that we were able to find such a good partner in Barrington. We wish Barrington, our former employees, and our customers all the best in the future."
In concert with the transaction, Barrington closed on a $172.5 million bank loan and $125 million bond offering to underwrite the cost of the acquisition and replace existing debt. The financing was arranged by Bank of America and Wachovia Securities.
Barrington was formed in 2003 to acquire and operate television stations in smaller markets across the United States. Its financial sponsor is the Pilot Group whose partners include Robert W. Pittman, Howard Lipson, Mayo Stuntz, and Robert B. Sherman. Since 2004, Barrington, with funding from the Pilot Group, has acquired eight other network affiliated televisions stations and a local marketing agreement for a ninth station. Concurrent with this announcement, Barrington stations will cover more than 3.4% of U.S. television households.
Raycom, an employee-owned company, is one of the nation's largest broadcasters and currently owns and operates 49 television stations in 22 states. Raycom stations cover more than 12.7 % of U.S. television households and employ 4200 individuals in full and part-time positions.
In addition to television stations, Raycom owns Raycom Sports (a marketing, production and events management and distribution company in Charlotte, North Carolina); Raycom Post (a post production facility in Burbank, CA), Broadview Media (a post production/telecommunications company based in Montgomery, AL), and CableVantage (a cable advertising sales group based in Columbia, SC).
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information contained herein or in any other written or oral statements made by, or on behalf of Raycom or Barrington, is or may be viewed as forward looking. The words "expect," "believe," "anticipate" or similar expressions identify forward-looking statements.
Although Raycom and Barrington have used appropriate care in developing any such forward-looking information, forward-looking information involves risks and uncertainties that could significantly impact actual results. These risks and uncertainties include, but are not limited to, the following: changes in national and local markets for television advertising; changes in general economic conditions, including the performance of financial markets and interest rates; competitive, regulatory, or tax changes that affect the cost of or demand for the Company's products; delays in completion of the proposed sale due to delays in securing necessary consents and regulatory approvals, and adverse litigation results. Raycom and Barrington undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.