DALLAS, TX–(HISPANIC PR WIRE – BUSINESS WIRE)–Aug. 27, 2002–Hispanic Broadcasting Corporation (the “Company”) (NYSE:HSP) today announced that it has entered into an agreement with entities owned by Simmons Media Group, to acquire five FM radio stations serving Albuquerque, New Mexico, the 19th largest Hispanic market in the United States, for approximately $22.5 million.
McHenry T. Tichenor Jr., President and CEO of Hispanic Broadcasting said, “We are pleased to enter Albuquerque through the purchase of five FM stations and welcome to our Company a capable team of broadcasters operating these stations today. We look forward to working with them to build on their past success.” David Simmons, President of Simmons Media Group said, “Hispanic Broadcasting Corp. is an outstanding company that is known for its dedication to the Hispanic markets they currently operate in and I am sure they will provide excellent service to the community of Albuquerque.”
The Company anticipates that the acquisition will close during the fourth quarter of 2002 and will be financed with cash on hand and bank borrowings. Peter Handy of Star Media Group served as broker for the transaction.
Hispanic Broadcasting Corporation, the largest Spanish-language radio broadcaster in the United States, currently owns and operates 55 radio stations in fourteen of the top twenty Hispanic markets. In June of this year, the company entered into a definitive merger agreement with Univision Communications; the pending merger is expected to close at around year-end. The Company also owns and operates a network of Hispanic community-focused bilingual web sites found at http://www.netmio.com, and its corporate website can be found at http://www.HispanicBroadcasting.com.
This news announcement contains certain forward-looking statements within the meaning of the U.S. securities laws. These statements are based upon current expectations and involve certain risks and uncertainties, including those related to the expected future operating performance of the Company’s radio stations and Internet business. Forward-looking statements include but are not limited to information preceded by, or that include the words, “believes”, “expects”, “prospects”, “pacings”, “anticipates”, “could”, “estimates”, “forecasts” or similar expressions. The reader should note that these statements may be impacted by several factors, including economic changes, regulatory changes, increased competition, the timing of announced acquisitions or radio station upgrades, changes in the broadcasting industry generally, and changes in interest rates. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Accordingly, the Company’s actual performance and results may differ from those anticipated in the forward-looking statements. The Company undertakes no obligation to update or revise the information contained herein because of new information, future events or otherwise.