11.	Subsequent Events

On February 1, 2016, we sold the assets of KAKE-TV (ABC) our station in the Wichita, Kansas television market to Lockwood Broadcasting, Inc., in exchange for the assets of television station WBXX-TV (CW) in the Knoxville, Tennessee television market and $11.2 million of cash. In connection with the disposal of the assets of KAKE-TV, we expect to record a gain of approximately [$2.0] million in the first quarter of 2016.

On February 16, 2016, we acquired the television and radio broadcast assets of Schurz for $442.5 million plus transaction related expenses. These television broadcast assets consisted of KWCH-TV (CBS) in the Wichita, Kansas television market; WDBJ-TV (CBS) in the Roanoke-Lynchburg, Virginia television market; KYTV-TV (NBC), KSPR-TV (ABC) and KCZ (CW) in the Springfield, Missouri television market; WAGT-TV (NBC) in the Augusta, Georgia television market; KTUU-TV (NBC) in the Anchorage, Alaska television market; and the ABC programming stream of KOTA-TV in the Rapid City, South Dakota television market. Simultaneously, we divested WSBT-TV (CBS) in the South Bend, Indiana television market to Sinclair Broadcast Group, Inc. in exchange for the assets of its television station WLUC-TV (NBC/FOX) in the Marquette, Michigan televison market. We also arranged for the divestiture of all the assets of Schurz’ radio stations for $16.0 million to independent third-party broadcasters. These radio broadcast assets were located in the South Bend and Lafayette, Indiana radio markets and Rapid City, South Dakota radio market. We do not anticipate recording a gain or loss related to the divestments of the assets of WSBT-TV or the radio stations formerly owned by Schurz. The net acquisition cost of the Schurz Acquisition and Related Transactions was $415.3 million plus transaction related expenses. We used borrowings under the 2016 Term Loan to fund the purchase price of the Schurz Acquisition and Related Transactions and to pay a portion of the related fees and expenses, the remainder of which were paid from cash on hand.

In connection with the consummation of the Schurz Acquisition and Related Transactions, we entered into the Second Amendment and Incremental Facility Agreement to our Senior Credit Facility. Pursuant to the Amendment and Incremental Facility, simultaneous with the consummation of the Schurz Acquisition, we were provided the 2016 Term Loan in an aggregate principal amount of $425.0 million and a $10.0 million increase in the revolving loan commitment under our Senior Credit Facility.

The 2016 Term Loan constitutes an additional term loan, and has the same terms as our existing term loan under the Senior Credit Facility, as amended by the Amendment and Incremental Facility, including a June 13, 2021 maturity date, except that the interest rate applicable to the 2016 Term Loan will be, at our option, either the Base Rate (as defined in the Senior Credit Facility) plus 2.50% or LIBOR plus 3.50%, subject to a LIBOR floor of 0.75%. We are also required to make quarterly principal repayments equal to 0.25% of the outstanding principal amount of the 2016 Term Loan.

Proceeds from borrowings under the 2016 Term Loan were used to fund the cash purchase price to complete the Schurz Acquisition and Related Transactions and to pay a portion of the related fees and expenses.

As a component of the Amendment and Incremental Facility, the maturity date of any revolving loans under the Senior Credit Facility was extended to July 1, 2020 and the interest rate applicable to the existing term loan was modified to be, at our option, either the Base Rate plus 2.1875% or LIBOR plus 3.1875%, subject to a LIBOR floor of 0.75%. Also pursuant to the Amendment and Incremental Facility, the asset sale covenant in the Senior Credit Facility was amended to allow us to (i) dispose of assets so long as the Operating Cash Flow (as defined in the Senior Credit Facility) attributable to any such assets sold in any 12 month period does not exceed 7.5% of our Operating Cash Flow and (ii) dispose of spectrum in connection with the pending incentive auction, without regard to the Operating Cash Flow test set forth above.

Due to the proximity of the closing dates of the Schurz Acquisition and Related Transactions to the the filing date of this annual report, we are unable to present a preliminary purchase price allocation for the acquired businesses. Fair value estimates of assets acquired, liabilities assumed and resulting goodwill will be based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches. In estimating the fair value of the acquired assets and liabilities assumed, the fair value estimates will be based on, among other factors, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.