Interep Gets Boost.
October 17, 2003
Boston Ventures Limited Partnership VI announced that it has committed to invest up to $50 million into Interep National Radio Sales, Inc. (OTC BB:IREP). The investment will be made in two tranches. Proceeds will be used for the acquisition of representation contracts and for general corporate purposes.
The first tranche consists of a $15 million investment in 7,500,000 newly issued shares of Interep Class A common stock to be purchased in a private placement at a price of $2.00 per share. The first tranche is expected to close on or before November 20, 2003 (subject to customary closing conditions).
The second tranche is a commitment to invest up to an additional $35 million in the form of a private placement of convertible preferred stock. This tranche is subject to certain conditions.
“I have known Ralph for over 30 years. In fact, he represented my first radio station. We are very pleased to be providing Interep with financing necessary to support its growth plans,” said Boston Ventures General Partner Barry Baker. “There is nobody I know with more knowledge of the national radio representation business than Ralph. Through his talents he has built the nation’s premier independent advertising sales and marketing company focused on radio.”
Ralph Guild, Chairman and CEO of Interep, said, “We are pleased to have the opportunity to partner with Boston Ventures, one of the premier private equity firms targeting the media, entertainment and communications sectors.”
