Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) has completed the sale of its Power 106 radio station in Los Angeles. The deal with California-based The Meruelo Group totaled more than $80 million.
In a filing with the U.S. Securities and Exchange Commission, Emmis says it will use the net proceeds of the sale, which totaled $73.6 million, to repay loan debt. When the sale was announced in May, Chief Executive Officer Jeff Smulyan called the move "bittersweet" but said he believed the station and its employees would be in good hands.
The sale is part of the company’s previously-announced plans to offload $80 million in assets and used the proceeds toward loan payments. Earlier this year, Emmis completed the $4.7 million sale of five Terre Haute radio stations as well as the $6.5 million sale of four publications.
In the same SEC filing, Emmis also announced it has agreed to a new contract with President and Chief Operating Officer Patrick Walsh. The new deal is in effect through July 2019.