12 Jun 2008

Wasatch Public Media Successful in its Bid for KCPW-FM through Assistance from Public Radio Capital and its Public Radio Fund

KCPW-FM to remain a public station serving the Salt Lake City region with its news format

(Salt Lake City, Utah) Wasatch Public Media and Public Radio Capital today announced that Wasatch Public Media has successfully completed a deal to purchase KCPW-FM from Community Wireless of Park City. In 60 days, the nonprofit Wasatch Public Radio raised nearly $1 million to acquire KCPW-FM and keep it running as a public news and information station. With guidance from Public Radio Capital, Wasatch Public Media submitted a $2.4 million package to purchase the station in late May. The licensee trustees, Community Wireless of Park City, voted unanimously to sell to Wasatch Public Media.

Community Wireless and Wasatch Public Media had entered into a letter of intent to sell KCPW-FM to Wasatch Public Media, Inc. for $2.4 million at the end of March. Wasatch Public Media is a Salt Lake City based group headed by Ed Sweeney who previously served as the Salt Lake station’s general manager. Wasatch Public Media has committed to maintain KCPW’s existing format of local and national news. "We are excited about the opportunity to keep KCPW on the air,” said Ed Sweeney, Wasatch Public Media president. “All odds were against us, but with the strategic help of Public Radio Capital, and our listeners and supporters, we were able to meet and exceed stringent financial requirements within an exceedingly short period of time."

The purchase will be made possible through financing from the Public Radio Fund, recently established by Public Radio Capital to provide affordable capital for asset-based projects such as buying radio stations and expanding program services. The Public Radio Fund loan of $620,000 will be used to establish an interest reserve account allowing Wasatch to borrow the remaining $2.2 million purchase price from the Washington based National Cooperative Bank. Wasatch will use $200,000 of the capital fundraising for a down payment and the remaining capital campaign pledges will be used to pay down the loans.

The Public Radio Fund’s loan to Wasatch Public Media is the first loan made by the Fund since it was established in Oct. 2007 by Public Radio Capital. “We are so pleased to be a part of Wasatch Public Radio’s efforts to keep KCPW-FM an independent, public radio station serving the Salt Lake City region with news and information,” said Marc Hand, managing director for Public Radio Capital. “This is the very reason that we established Public Radio Capital in 2001 and launched the Public Radio Fund in 2007.”

The transaction is expected to be completed this week and the station will officially transfer ownership to Wasatch Public Media upon FCC approval, which will take approximately 120 days to complete.

About Wasatch Public Media and KCPW-FM

Wasatch Public Media (WPM) is a Utah nonprofit corporation established for the sole purpose of acquiring the assets of KCPW-FM. WPM represents the Salt Lake City-based operation of KCPW, including the KCPW staff. WPM will maintain KCPW's news operation in its current format and continue broadcasting from KCPW's facility at Library Square. KCPW-FM public radio serves the greater Salt Lake metropolitan area with local, national and international news and information 24-hours a day.

About Public Radio Capital

Public Radio Capital’s mission is to strengthen and expand noncommercial media to provide local communities nationwide with more in-depth information, unbiased news, diverse music and cultural programming. Since its founding in 2001, PRC has completed transactions totaling more than $154 million and secured access to public radio services for more than 31 million people. PRC has worked with more than 200 public radio stations ranging from first time station owners to the largest, multi-channel public radio operators in the country, helping them to buy and finance new channels, to preserve existing public radio outlets, and to strengthen their organizations and services.

In Oct. 2007, PRC launched the Public Radio Fund to benefit public radio organizations in need of short-term capital for asset-based projects. Public broadcasters are invited to apply for capital loans from the Public Radio Fund for station acquisitions to increase and diversify public radio program services for more people in communities across the country. The Public Radio Fund has initial investment commitments of more than $8.5 million from Calvert Social Investment Foundation, Ford Foundation, Nonprofit Finance Fund, National Public Radio, Inc., and individual investors. Loans from the Public Radio Fund will range from $100,000 to $3 million.