MILWAUKEE--(BUSINESS WIRE)--Aug. 13, 2012--
Journal Communications, Inc. (NYSE:JRN), a diversified media company,
has acquired all 3,264,000 outstanding shares of its Class C common
stock (4,451,998 shares on a Class A-equivalent basis), all of which
were owned by members and successors of the Grant Family. In this
repurchase, the company paid $6,245,536 in cash and issued unsecured
subordinated promissory notes with an aggregate principal amount of
$25,598,989 as the purchase price for the Class C shares. The cash
payment equaled the amount of the minimum unpaid and undeclared dividend
on the Class C shares.
“This transaction simplifies our capital structure and allows us to
remove a class of stock that had enhanced voting and other rights,” said
Steven J. Smith, Chairman and CEO.
The Class C shares were first issued at the time of the company’s
initial public offering in 2003 and had rights that included, among
others, a minimum dividend, rights to approve strategic transactions or
to receive a premium in the event of a strategic transaction, conversion
rights, two votes per share, and a right to designate a board nominee.
The Class C rights were terminated with this transaction.
The transaction reduced the number of outstanding shares by 3,264,000
shares and will have a positive effect on the company’s reported
earnings per share (EPS).
The Company was advised by Greenhill & Co.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was
founded in 1882. We are a diversified media company with operations in
radio and television broadcasting, publishing and interactive media. We
own and operate or provide programming and sales services to 35 radio
stations and 14 television stations in 12 states. We publish the Milwaukee
Journal Sentinel, which serves as the only major daily newspaper for
the Milwaukee metropolitan area, and several community newspapers and
shoppers in Wisconsin. Our interactive media assets build on our strong
publishing and broadcasting brands.
Source: Journal Communications, Inc.
Journal Communications, Inc.
Andre Fernandez, 414-224-2884
and Chief Financial Officer