The shared services agreement between KGMB-TV, KHNL-TV and KFVE-TV will have Alabama-based Raycom Media Inc. pay $22 million to new KFVE owner MCG Capital Corp. of Virginia, according to a filing with the U.S. Securities and Exchange Commission.
The payment amounts to a sale, which would require regulatory approval the parties have said was unnecessary.
MCG’s SEC filing said it completed an asset-exchange transaction with Raycom on Oct. 26.
As part of a deal dated Oct. 16, MCG exchanged with Raycom certain assets used in the operation of MCG’s KGMB-TV “in return for a $22.0 million note, with current pay interest,” as well as programming assets used in the operation of K5.
Also on Oct. 26, it entered into a shared services agreement with Raycom in which Raycom is providing services to K5, the Wednesday filing said. More…