The filing with the FCC for Connoisseur Media to acquire the radio stations and other assets of Alpha Media is now public and Jeffrey Warshaw’s Connoiusseur is not paying cash for Alpha Media; it is instead assuming the company’s debt. The complicated deal announced back on May 5 will result in
current Alpha Media shareholders retaining their interest in the company but ceding control to Connoisseur. Under the terms of the deal, Alpha shareholders will reorganize into a new company which will become part of Connoisseur in exchange for a 3.75% equity stake in Connoisseur, plus two warrants to allow them to acquire more equity – one for 5% at $30 million valuation and the other for up to 5% at $70 million valuation. Connoisseur is acquiring new credit facilities to finance the retirement of Alpha debt plus a new, revolving credit line. Connoisseur is operating the Alpha under an LMA and when the deal closes, the new Connoisseur will own and operate 218 stations in 47 markets.
