NextMedia Group said late Tuesday that it has sold NextMedia Outdoor, its outdoor advertising unit, to Lamar Advertising Co. for $145 million. Englewood, Colo.-based NextMedia, which is backed by Strategic Value Partners and Angelo, Gordon & Co., operates 33 stations across eight markets in the U.S. With the sale of Outdoor, NextMedia says it will focus on the radio broadcasting business.
NextMedia Group, Inc. (“NextMedia”), a leading media company, announced that it has completed the sale of NextMedia Outdoor, Inc., its outdoor advertising subsidiary, to Lamar Advertising Company for $145 million. NextMedia is majority owned and advised by funds Strategic Value Partners, LLC (collectively, “SVP” or “Strategic Value Partners”) and Angelo, Gordon & Co. (“Angelo Gordon”).
With the completion of the transaction, NextMedia is now focused on its radio broadcasting business, which operates 33 stations across eight markets in the U.S
SVP and Angelo Gordon have been actively involved in NextMedia since 2010. Initially, as the largest creditors to the company, the firms helped lead the restructuring of the business. Subsequently, they gained equity ownership of the company when it emerged from Chapter 11. Appointing and working closely with management, SVP and Angelo Gordon improved the existing operations, and expanded the outdoor advertising platform through acquisitions and a highly successful program to roll out digital billboards. This work greatly enhanced the value of NextMedia Outdoor and led to its ultimate sale. The sale has eliminated NextMedia’s debt and will add to the company’s cash balance.
“We are delighted with the sale of NextMedia Outdoor to Lamar Advertising Company. With the valuable assistance of SVP and Angelo Gordon, we grew our outdoor advertising operations and created a highly attractive business. This transaction allows us to focus solely on our radio operations,” said Jim Donahoe, CEO of NextMedia.
Victor Khosla, Founder and Chief Investment Officer of SVP, said: “We are pleased to have been able to partner with management to achieve the turnaround of and the growth in operations and performance of NextMedia Outdoor, and we look forward to continuing to help the team drive the value of NextMedia’s radio operations.”
About Strategic Value Partners
Strategic Value Partners, LLC is a distressed and deep value investment firm with approximately $4 billion in assets under management and was founded in 2001 by Victor Khosla. As of October 1, 2012, the firm had over 100 employees, including 39 investment professionals, across its main offices in Greenwich (CT), London, Frankfurt and Tokyo. SVP’s focus is on distressed, deep-value opportunities in middle-market companies where it can typically exert significant influence or, in some circumstances, obtain outright control. SVP typically takes an active role in transactions, whether driving the financial restructuring of companies facing bankruptcy, on ad hoc or formal creditors’ committees, or leading the turnaround of a business by driving the strategic and operational direction of the company. For more information, visit www.svpglobal.com.
About Angelo Gordon
Angelo, Gordon & Co. L.P. is a privately held limited partnership founded in November 1988, and currently manages approximately $24 billion. The Firm’s investment focus centers around three core competencies – credit, real estate and private equity – and manages capital across five principal areas: (i) distressed debt and leveraged loans, (ii) real estate equity and debt, (iii) residential and commercial mortgage-backed and asset-backed securities, (iv) private equity, and (v) multi-strategy. Angelo Gordon has over 260 employees (100 of whom are investment professionals) and is headquartered in New York, with associated offices in Chicago, Los Angeles, Washington, D.C., London, Amsterdam, Hong Kong, Seoul, Shanghai, Tokyo and Sydney. For more information, visit www.angelogordon.com.