9 June 2009

Public Radio Capital Brokers KERA Radio Station Acquisition

KERA plans new public radio service through 91.7 FM in Dallas Fort Worth region

(Boulder, Colo.) Public Radio Capital (PRC) and KERA today announced that KERA, public television and radio for North Texas, has purchased the noncommercial radio license 91.7 FM. PRC served as the broker and financial advisor for the KERA acquisition, which will increase public media options for residents of North Texas. The new station will offer a Triple A music format, showcasing the diverse local music of North Texas, programmed for listeners in the Dallas Fort Worth region to complement KERA’s news and information station on 90.1 FM.

PRC represented KERA in the acquisition of 91.7 FM. “This is a tremendous opportunity for increased public radio service for North Texas,” said Marc Hand, PRC managing director. “It will allow KERA to bring a proven public radio format into the market and dramatically grow the public radio audience, particularly among younger and more diverse audiences. At PRC, we are thrilled to have played a role in helping KERA envision the opportunity, secure the financing in a difficult credit environment and acquire this new channel for public service media. KERA’s strength as an organization made this opportunity possible.”

PRC assisted KERA through its brokerage services and helped secure financing for the $18 million purchase through a consortium of three mission-focused lenders: National Cooperative Bank, FJC and PRC’s Public Radio Fund. “Despite the current difficulties in the credit market, PRC’s history of success and deep relationships with national lenders combined with financing available from PRC’s own Fund allowed us to raise the necessary capital to consummate this transaction,” added Hand. “KERA’s strong management team and commitment to public service will ensure the new station’s success.”

“This acquisition allows KERA to significantly advance its mission and strategic direction by increasing public media services for the people of North Texas,” said Mary Anne Alhadeff, KERA’s president and CEO. “The new station will be a public radio music format programmed with the North Texas audience in mind. It will be a terrific complement to KERA’s news and information station 90.1 FM and a substantial addition to KERA’s overall multimedia services for the public.” The new station will begin broadcasting its full schedule in the fall of 2009.

About FJC

FJC, a public foundation headquartered in New York City (www.fjc.org), manages donor advised funds and a loan program for nonprofits as well as several philanthropic programs. These programs include providing fiscal sponsorship for entrepreneurial charitable projects, collective giving/giving circle funds and managing certain scholarship or awards programs. Its loan program has been nationally recognized for its innovative approach to nonprofit financing.

About NCB

NCB's mission is a financial services company that crafts financing solutions for cooperative endeavors throughout America. NCB serves co-ops and their members, as well as entities that share similar cooperative principles - like nonprofit organizations. NCB has provided financial services to nonprofit organizations, such as public radio stations, independent schools, museums, cultural institutions and community-based organizations for more than 25 years. With an understanding of nonprofit needs and challenges, NCB has the expertise and flexibility to meet the financial needs of the non-profit community.

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 $207 million and secured access to public radio services for approximately 40 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 nearly $10 million from Calvert Social Investment Foundation, Ford Foundation, Nonprofit Finance Fund, NPR, Inc., and individual investors. Loans from the Public Radio Fund range from $100,000 to $3 million. Investors in the Fund receive 0-4 percent.

More information about PRC and the Public Radio Fund is available at www.publicradiocapital.org.