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Nexstar (NXST) Receives $6.7M in Fees, Payments Related to Sale of Four Points Media

January 4, 2012 3:58 PM EST
NXST Hot Sheet
Overall Analyst Rating:
    SELL (= Flat)

Revenue Growth %: +19.7%
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it has received a payment of $6.7 million comprised of management and incentive fees earned for 2011 as well as a termination payment, related to the sale of Four Points Media Group LLC, by an affiliate of Cerberus Capital Management, L.P., to Sinclair Broadcast Group, Inc. (Nasdaq: SBGI). Approximately $4.7 million of the payment will be recognized in Nexstar’s fourth quarter ended December 31, 2011 and the balance of approximately $2.0 will be recognized in the first quarter of 2012 (ending March 31).

Nexstar will use the payment made by Cerberus under the management services agreement for debt reduction and general corporate purposes. The management services agreement with Four Points terminated effective with the closing of the sale of its stations to Sinclair on January 3, 2012.


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