Saturday, November 27, 1999

Regent plans public offer of 13.35M shares


Broadcaster foresees acquisitions

BY RANDY TUCKER
The Cincinnati Enquirer

        Regent Communications Inc. plans a public stock offering of 13.35 million additional shares to raise money for acquisitions and to pay off debt.

        The Covington-based radio broadcaster also plans to sell radio stations in Kingman, Ariz., and Lake Tahoe, Calif., for about $6.3 million, according to a recent Securities and Exchange Commission filing.

        Regent, which owns 42 AM and FM stations in small and mid-sized markets in five states, expects to gain an estimated $91.5 million from the stock sale, expected in the range of $6.50 to $8.50 a share, according to the SEC filing. The company will offer about a 50 percent stake to the public.

        The company also expects to raise another $19 million from the sale of its Series K convertible preferred stock, according to the filing.

        Combined with the proceeds from the sale of the stations, Regent could net up to $131 million.

        The company told the SEC that it would use $70 million of the proceeds to pay for acquisitions, $49 million to pay outstanding debts and about $12 million to pay dividends.

        The company said it will continue to focus on acquisitions in small and medium markets, where there is greater use of radio advertising — the main revenue source.

        Regent recently bought three stations in El Paso, Texas, for $23.5 million and acquired 31 stations in June when it merged with Faircom Inc.

        The company was originally co-founded in 1993 by radio veterans Terry Jacobs, 57, and William Stakelin, 56. Mr. Jacobs' stake in the company will drop to 2.2 percent from 3.8 percent after the offering.

        The old Regent was later sold to Cincinnati radio giant Jacor Communications, of which Mr. Jacobs also is founder and namesake.

        In 1997, the two men formed the new Regent Communications Inc., where Mr. Jacobs serves as chairman, chief executive and director, and Mr. Stakelin is president and chief operating officer.

        Bloomberg News contributed to this report.

       



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