SANTA ANA, Calif., May 15, 2006 (PRIMEZONE) -- ACME Communications, Inc. (Nasdaq:ACME) announced today that it has entered into a definitive agreement to sell WTVK-TV in Fort Myers-Naples, FL to Sun Broadcasting, Inc. for $45 million. The all cash transaction is expected to close by the end of the third quarter of 2006. WTVK is currently affiliated with the WB Network, and will switch to a CW Network affiliation with the launch of the new network in September 2006. Fort Myers-Naples is the nation's 66th largest television market, based on television households.
Jamie Kellner, ACME's Chairman and CEO, commented, "The strategic monetization of this station reflects our focus on maximizing our assets to the benefit of our shareholders. We will use the proceeds to eliminate all amounts outstanding under our senior credit facility, significantly strengthening our financial position. The transaction highlights what we believe to be increased station valuations for impending CW Network affiliates, as well as the overall strength of the Fort Myers-Naples market, one of the fastest growing markets in the country. Sun Broadcasting acquires a station with a loyal audience base and a solid local management team. We thank all of our employees at WTVK for their hard work and dedication over the years."
Under the terms of ACME's senior revolving credit agreement restructured on March 29, 2006 (the "Revolver"), following the completion of the sale of WTVK and the expected repayment of all amounts outstanding thereunder, ACME will have approximately $39.6 million in maximum borrowings available under the Revolver.
The Blackstone Group L.P. served as financial advisor to ACME.
About ACME Communications, Inc.
ACME Communications, Inc. owns and operates eight television stations serving markets reaching 3.0% of the nation's television households. The Company's stations are: KWBQ-TV and KASY-TV, Albuquerque-Santa Fe, NM; WBDT-TV, Dayton, OH; WBXX-TV, Knoxville, TN; WTVK-TV, Ft. Myers-Naples, FL; WIWB-TV, Green Bay-Appleton, WI; WBUI-TV, Champaign-Springfield-Decatur, IL and WBUW-TV, Madison, WI. ACME's shares are traded on the NASDAQ Stock Market under the symbol: ACME.
Forward-Looking Statements:
The matters discussed in this press release include forward-looking statements. In addition, when used in this press release, the words "will", "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to, the transaction not closing (due to the buyer not completing the transaction, the transfer not being approved by the Federal Communications Commission, or for any other reason). The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.