E.W. Scripps sells TV station building for $40 million

Published 30/04/2025, 22:20
E.W. Scripps sells TV station building for $40 million

The E.W. Scripps Company (NASDAQ:SSP), a media company with annual revenue of $2.51 billion and EBITDA of $583.49 million, has finalized the sale of its television station building in West Palm Beach to 1100 Banyan LLC. The transaction, which took place on April 30, 2025, involved a cash consideration of $40 million. Alongside the sale, Scripps has entered into a lease agreement with the new owner, securing the use of the building for the next two and a half years at an annual cost of $2.5 million.

The sale of the property is part of Scripps’ ongoing strategy to optimize its asset portfolio. The leaseback arrangement will allow the company to continue its operations without interruption while it transitions to a new location or restructures its operational footprint. According to InvestingPro data, the company maintains a healthy current ratio of 1.31, indicating strong ability to meet its short-term obligations.

This strategic move comes amid broader changes in the broadcasting industry, with many companies reassessing their physical assets in response to the evolving media landscape. Scripps, with its history in television broadcasting stations, is adapting to these industry shifts through such real estate transactions.

The E.W. Scripps Company, headquartered in Cincinnati, Ohio, is known for its operations in television broadcasting. The information disclosed in this article is based on the company’s filing with the Securities and Exchange Commission.

In other recent news, The E.W. Scripps Company has been navigating a series of financial and strategic developments. Fitch Ratings downgraded Scripps’ Long-Term Issuer Default Rating (IDR) to ’RD’ from ’CCC-’, but subsequently upgraded it to ’CCC-’ after the closure of a transaction support agreement. This agreement improved the company’s debt maturity profile, although Fitch anticipates further distressed debt exchanges. S&P Global Ratings also upgraded Scripps to ’CCC+’ from ’SD’, highlighting the company’s ongoing need to refinance $426 million in senior unsecured notes due in 2027. Despite these upgrades, both Fitch and S&P express concerns about Scripps’ capital structure and future refinancing risks.

Scripps’ recent debt restructuring plan has led S&P Global Ratings to downgrade the company from ’B-’ to ’CC’, viewing the restructuring as distressed. The company plans to exchange existing term loans with new ones due in 2028 and 2029, which could potentially be seen as a default. Benchmark analyst Daniel Kurnos raised Scripps’ stock target to $8, maintaining a Buy rating, following a significant rise in the company’s shares due to a better-than-expected refinancing deal. The potential for deregulation by the Federal Communications Commission ( FCC (BME:FCC)) is also seen as a positive development for local broadcasters like Scripps.

Scripps’ stock performance was further bolstered by optimism around FCC Chairman Carr’s proposed deregulation initiative, which could benefit local broadcasters. Analysts suggest that strategic options such as asset swaps or mergers could be on the table for Scripps. The company reported fourth-quarter earnings that exceeded consensus estimates, and cost-saving measures alongside potential growth in their ION network are showing progress. Despite these positive indicators, Scripps faces ongoing challenges with its substantial debt burden and the evolving media landscape.

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