Gray Communications Systems, Inc. Exercises Option For
$10 Million to Purchase Investment
ATLANTA, Dec. 3 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that Gray Communications Systems, Inc. has exercised a $10 million
option to acquire Bull Run's 33.5% investment in Sarkes Tarzian, Inc.
(representing 73% of the equity of Tarzian for purposes of dividends and
distributions). Sarkes Tarzian is an owner and operator of two television
stations and four radio stations. Bull Run acquired its investment in Sarkes
Tarzian in January 1999 for $10 million, and shortly thereafter entered into a
stock option agreement with Gray providing Gray the option to purchase Bull
Run's investment. Under the terms of the option agreement, Bull Run has
received over $2.4 million in fees from Gray since 1999, plus an option to
purchase 100,000 shares of Gray Communications class B common stock at an
exercise price of $13.625 per share that is now fully vested and expires in
10 years.
Bull Run applied the proceeds of the sale to its outstanding bank term
debt, thereby meeting all term debt reduction obligations under its bank
credit facility until such facility matures in July 2002. Since September
2000, Bull Run has reduced its term debt by over $31 million, and by over
$20 million since its fiscal year ended June 30, 2001.
Bull Run, through Host Communications, provides affinity, multimedia,
promotional and event management services support to universities, athletic
conferences, associations and corporations. Bull Run also has significant
investments in Gray Communications Systems, Inc., an owner and operator of 13
television stations and four newspapers; Rawlings Sporting Goods Company,
Inc., a leading supplier of team sports equipment in North America; and iHigh
Inc., a marketing company focused on high school students.
Forward-Looking Statements
Certain statements in this press release are "forward looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are not guaranties of future performance and actual results
may differ materially from those forecasted.
SOURCE Bull Run Corporation
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Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/232438.html
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer of Bull Run Corporation, +1-404-266-8333
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