LANHAM, Md. – Radio One Inc., which owns and operates radio stations throughout the eastern United States, held an initial public offering May 5. The company offered 6.5 million shares at $24 apiece, at the top of its $22 to $24 filing range.
Underwriters included Credit Suisse First Boston, Bear, Stearns & Co. Inc., BT Alex. Brown, Banc of America Securities and Prudential Securities. The offering left 17.4 million shares outstanding.
Syndicated Communications, Burr, Egan, Deleage & Co., Alliance Enterprise Corp., BancBoston Investments Inc., Opportunity Capital Corp., Fulcrum Venture Capital Corp. and Syncom Capital Corp. were venture investors. Selling shareholders offered 1.7 million shares.
Radio One, founded in 1980, is a radio broadcasting company that primarily targets African-American audiences. The company owns 13 FM radio stations and plans to acquire another 12 in the coming years. All of Radio One’s stations have had increased ratings and cash flow this past year.
The company plans to retain future earnings and does not foresee paying dividends on common stock. Proceeds from the offering, worth an estimated $156 million, will be used to repay debt, redeem all of preferred stock and to increase working capital.
Terry Jones, president of Syndicated Communications, and Brian McNeill, general partner of Burr Egan joined the company’s board in 1995.
Radio One – Selected Financial
(in thousands, except per share data )
Fiscal Year Ended December 31, (Unaudited)
1996 1997 1998
Net broadcast revenue 23,702 32,367 46,109
Loss applicable to common stockholders -3,609 -4,996 -2,875
Loss per share -0.38 -0.53 -0.31