KJAZ 98.1FM

The man behind LTT Broadcasting, Leo Trott, is hoping to launch Bermuda's newest radio station by the end of the month.

The new station, which will be called KJAZ 98.1FM, intends to broadcast financial news and other programmes produced by American Public Media, such as Market Place Morning Report, Future Tense, Sound Money and As It Happens. As I discovered yesterday, the station is currently testing audio quality and propagation on 98.1FM. Once the results have been submitted and their $15,000, 5-year licence fee has been paid, the station will be ready to launch, possibly as early as the end of May.

"We've got a good mix of local talent and guest workers onboard, who reflect the cosmopolitan make up of our community," said Mr. Trott. Nonetheless, he'd like to hear from anyone with relevant experience, such as radio announcers or ad production, who would be interested in working for the station in their spare time. Bermudians and expats are welcome. Mr. Trott is also interested in receiving suggestions for the musical content of the station.

Getting the station operational has been an expensive business, however, and Mr. Trott has 15% of preferred stock that he would like to sell. "Turning this project up without the bank loan has left me financially drained, and I'm willing to give up some control in exchange for a modest capital injection," he said.

He's also considering selling the station's moniker to a corporate sponsor. While I can understand the need to generate revenue, I'm not so sure about this idea, which would result in the station being called "company name" 98.1FM instead.

The more radio stations Bermuda has, the better. I wish Mr. Trott and his new venture luck.

Comments

[Andrew on 10.05.05 at 23:28]

How wrong I was! I too, wish him luck.

[big bad wolf on 11.05.05 at 07:51]

Da Da Da Wolf knew! Faster then a speeding blog...Its Wolf running with information ^..^

[ace on 11.05.05 at 08:53]

Ummm...15% perferred stock? I'm dubious. What kind of control is he giving up? There is no mention of common stock on offer.

[jake on 11.05.05 at 10:55]

Sounds like a nice guy without much by way of commercial learning. He just started the business and has not planned for its financing - outside of his own pocket?

Next he will be asking the international business community to fund it.

I have seen this pattern before.

[uh-huh on 11.05.05 at 13:38]

jake,

glad you can deduce that from a quote in limey's blog.

if someone summed you up from a few of the lines you write here, i am sure you would be misrepresented.

cut him some slack.

[Investment Banker on 11.05.05 at 14:07]

Ace,

Preferred stock is sometimes offered in private placements since it is a more valuable ownership asset than common stock. This is because it typically (i) has greater voting rights and (ii) receives preferential dividend payments, when compared to common stock. It provides greater inducements to investors to invest.

The control he is giving up would presumably be 15% i.e. giving up 15% voting rights. Now, the *value* of this 15% ownership (and control) stake is what is the real issue here.....

[JJ on 11.05.05 at 14:20]

Limey, do you have a contact number for Mr. Trott?

[ace on 11.05.05 at 14:33]

IB...

Voting rights are not "necessarily" a given with respect to preference shares. They have "preference" as you say in terms of dividends and should the company go bankrupt the holder would have "preference" when the assets are liquidated. This needs to be clarified...but I cannot "assume" that these particular shares have such voting rights.

I am, however, more concerned about the 15% interest which will need to be funded (entirley from the "profits" of a start-up radio station I assume). I've seen lots of companies, with the best of intentions, "lap" the proceeds on sales of such shares to recent purchasers in order to fund the interest payments to earlier investors. Eventually the well runs dry and everyone loses.

[jake on 11.05.05 at 16:19]

uh-huh,

Point taken, but I will be honest that I tire of the continuous expectations from some quarters (and for the record I include the present Government) to reach out to the international community to support ideas that cannot commercially support themselves.

Perhaps I am being overly critical, so I accept that.

[New York IBD on 11.05.05 at 18:34]

Are we talking a percentage of the preferreds or a coupon on the preferreds?

Very different things...

[Steve on 18.05.05 at 10:21]

Based on the call letters, this station must be in the south-west USA.

[Nia on 27.05.05 at 00:52]

I think it's wonderful that Bermudians have more chances to appreciate and choose form several stations. After all, its somewhat redundant listening to hott 107 play the same 5 songs but the other option is power 95 with the old guy captain trying deseperately to recapture his youth - or hawking some event we have no interest in. I wish Mr. Trott all the best.