GREENWICH, Conn.--(BUSINESS WIRE)--Townsquare Media, Inc. (NYSE:TSQ) (the “Company”) today announced that it has entered into an agreement to sell 43 towers to a subsidiary of Vertical Bridge Holdings, LLC for approximately $22.8 million in cash, subject to closing adjustments (the “Tower Sale”). The Company will retain ownership of more than 250 towers following the Tower Sale.
“We are very excited to complete this transaction which will allow us to unlock capital sequestered in non-strategic tower assets at an attractive valuation level,” commented Townsquare Chairman and Chief Executive Officer Steven Price.
The 43 towers being divested are located on 41 sites in 28 markets and presently house antenna which broadcast certain of the Company’s radio stations, together with third party tenants who pay rent for similar space on such towers. For a period of 35 years following the closing, including an initial term of twenty years and three optional five-year renewal periods, the Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. The Company has also entered into an agreement with Vertical Bridge whereby Vertical Bridge will serve as the exclusive marketing agent for the towers retained by the Company. The Tower Sale will reduce the Company’s annual net revenue and Adjusted EBITDA by approximately $1.5 million and $1.3 million, respectively.
Alex Gellman, Vertical Bridge Chief Executive Officer commented: “We are excited to be working again with the team at Townsquare Media. With over 250 managed sites and 43 owned towers, this transaction adds over 300 high quality towers in great locations to our growing portfolio of owned and managed towers, including a strong rent roll of third party tenants.”
About Townsquare Media, Inc.
Townsquare Media, Inc. is an integrated and diversified media and entertainment and digital marketing services company that owns and operates market leading radio stations, digital and social properties and live events in small and mid-sized markets across the United States, delivering national scale and expertise to the communities it serves on a local level. The Company owns and operates 310 radio stations, over 325 search engine and mobile-optimized local websites and approximately 500 live events in 66 small and mid-sized U.S. markets, making Townsquare Media the third largest owner of radio stations in the United States by number of radio stations owned. The Company supplements its local offerings with the nationwide reach of our owned, operated and affiliated music and entertainment websites, which, on a combined basis, attracted the largest audience among music focused digital advertising networks as of June 2015 as well as certain large scale live events. For more information, please visit www.townsquaremedia.com.
About Vertical Bridge Holdings, LLC
Vertical Bridge Holdings, LLC is a privately-owned real estate investment trust focused on the ownership of wireless communication towers in the U.S. The company owns, operates and manages telecommunications towers, rooftops, and site locations across the country. Vertical Bridge was founded in 2014 by Digital Bridge Holdings, LLC as well as certain key executives from Global Tower Partners, and is headquartered in Boca Raton, Florida. For more information, please visit www.verticalbridge.com or contact Erica Robertson at: 561-406-4032.
Forward Looking Statements
Statements in this press release that are not historical are forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management’s current beliefs and expectations and are subject to uncertainty and changes in circumstances. They contain words such as “believe,” “intend,” “expect” and “anticipate” and include statements about expectations for the Company’s operations, markets, products, services, financial results and other risk factors discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including under the “Risk Factors” section in the Company’s most recent Form 10-K and other SEC filings. Unless otherwise required by applicable laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information or future developments.