18 October 2007

PRC Launches New Public Radio Fund

Public Radio Capital (PRC) announced today the launch of its new Public Radio Fund (the “Loan Fund”) to benefit public broadcasting organizations in need of short-term capital. The purpose of the Loan Fund is to allow these organizations to borrow affordable capital for asset based projects, such as buying radio stations to expand program services to new and existing audiences.

The Public Radio Fund has initial investment commitments of over $8 million from Calvert Social Investment Foundation, Ford Foundation, Nonprofit Finance Fund, National Public Radio and individual investors. We plan to continue to grow the Loan Fund with a target of $15 million in the first year and $50+ million long term. “We are very grateful to our initial investors. These funds can now be borrowed by public radio organizations when short-term capital is needed to move quickly in buying new public radio stations,” said Susan Harmon, PRC Managing Director. “We believe this is a wonderful new tool for acquiring these valuable channels and thereby increasing and diversifying public radio program services for more people in communities across America.”

Public broadcasters are invited to apply year-round for capital loans from the new Public Radio Fund. These loans may be used to fund a station acquisition earnest money deposit, the acquisition of equipment; short term (3-5 years) station acquisition loans, and to fund debt reserve funds to be held as a portion of a station acquisition financing package. Interest rates will be tied to the Fund’s cost of capital, and will typically be between 5%-8%, with loan origination fees of 1% of the total amount of the loan. Loans will be extended for a period of six months to five years, and borrowers will be responsible for all closing costs. After an application review and formal credit assessment, applications will be processed within 20-30 business days.

“The Public Radio Fund has been our dream since the founding of Public Radio Capital over six years ago,” said Marc Hand, PRC’s other Managing Director. “Public Broadcasters will finally have access to short-term capital from an organization that understands their business and the competitive forces in the marketplace.”

For more information on borrowing from the Loan Fund, please contact Erik Langner, Director of Acquisitions, Public Radio Capital at elangner@publicradiocapital.org or Tel. 415-235-6923. Applications are available at Public Radio Capital’s website, http://www.publicradiocapital.org/fund/borrowing.php.

About Public Radio Capital:

About Public Radio Capital: founding in 2001, PRC has worked with over 200 public radio organizations ranging from first time station owners to the largest, multi-channel public radio station owners in the country. With a mission to protect, innovate, finance and expand public radio services, PRC broadens the reach of public radio in communities nationwide. PRC has led its clients through $130 million in radio transactions, securing public radio access for 28 million people nationwide.