Cumulus Finally Free Of WMAL Site
• After five years of drama, Cumulus Media Inc. announced that it has finally closed on the sale of a 75-acre parcel of land in Bethesda, MD — the former longtime tower site of WMAL-AM & FM, to Toll Brothers developers, which plans to build some 300 homes on the site. The parcel, which was acquired by Cumulus in its 2011 purchase of Citadel Broadcasting Corp., notably featured four 400-foot towers that were erected in the early 1940s. The site was permanently shut down on May 1, 2018.
Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “Given the difficult operating environment, our ability to continue to strengthen our balance sheet with the proceeds of this deal is particularly meaningful, and we greatly appreciate the efforts of Toll Brothers in working with us to bring this five-year effort to completion.”
The sale generated gross proceeds of $74.1 million, $5 million of which had been received in 2019, and expected net proceeds of $71.3 million after transaction fees and expenses. The Company anticipates achieving minor expense savings from the elimination of real estate taxes after the closing and does not expect any tax liability as it relates to the transaction. Net proceeds from the sale are required to be used to pay down debt, unless otherwise reinvested in the Company’s business over the next 12 months. [Photo credit: Bethesda Magazine]
