Securities and Exchange Commission
Washington, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
MULTI-MARKET RADIO, INC.
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(Name of issuer)
Class A Common Stock, par value $.01 per share
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(Title of class of securities)
625432 10 9
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(CUSIP number)
Michael Burrows
Baker & McKenzie
805 Third Avenue
New York, New York 10022
(212) 751-5700
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(Name, address and telephone number of person
authorized to receive notices and communications)
August 28, 1996
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(Date of event which requires
filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box. [ ]
Check the following box if a fee is being paid with this statement [ ]. (A fee
is not required only if the filing person: (1) has a previous statement on
file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
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CUSIP No. 625432 10 9 13D Page 2 of ___ Pages
1 NAME OF REPORTING PERSON ROBERT F.X. SILLERMAN
S.S. OR I.R.S. ID NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER (a) [ ]
OF A GROUP (b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS PF, 00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER 227,000
SHARES ----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED ----------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER 107,000
REPORTING ----------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED 227,000
BY EACH REPORTING PERSON
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW [ ]
(11) EXCLUDES CERTAIN SHARES
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13 PERCENT OF CLASS REPRESENTED BY 6.9%
AMOUNT IN ROW (11)
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14 TYPE OF REPORTING PERSON IN
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Page 2 of __ pages
<PAGE>
CUSIP No. 625432 10 9 13D Page 3 of ___ Pages
1 NAME OF REPORTING PERSON MICHAEL G. FERREL
S.S. OR I.R.S. ID NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER (a) [ ]
OF A GROUP (b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS NOT APPLICABLE
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5 CHECK BOX IF DISCLOSURE OF LEGAL [ ]
PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER 66,000
SHARES ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER 66,000
REPORTING ------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED 66,000
BY EACH REPORTING PERSON
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW [ ]
(11) EXCLUDES CERTAIN SHARES
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13 PERCENT OF CLASS REPRESENTED BY 2.0%
AMOUNT IN ROW (11)
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14 TYPE OF REPORTING PERSON IN
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Page 3 of __ pages
<PAGE>
CUSIP No. 625432 10 9 13D Page 4 of ___ Pages
1 NAME OF REPORTING PERSON BRUCE MORROW
S.S. OR I.R.S. ID NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER (a) [ ]
OF A GROUP (b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS NOT APPLICABLE
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5 CHECK BOX IF DISCLOSURE OF LEGAL [ ]
PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER 20,000
SHARES ---------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED ---------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER 10,000
REPORTING ---------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED 20,000
BY EACH REPORTING PERSON
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW [ ]
(11) EXCLUDES CERTAIN SHARES
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13 PERCENT OF CLASS REPRESENTED BY 0.6%
AMOUNT IN ROW (11)
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14 TYPE OF REPORTING PERSON IN
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Page 4 of __ pages
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The transaction reported in this Amendment No. 1 of this statement on Schedule
13D is the conversion by Robert F.X. Sillerman of his non-voting Class C
Common Stock, par value $.01 per share (the "Class C Common Stock"), and his
non-voting Preferred Stock, par value $.01 per share (the "Preferred Stock"),
into shares of Class B Common Stock, par value $.01 per share (the "Class B
Common Stock"), which has ten votes per share on most matters. Accordingly, no
funds or other consideration were used in connection with this transaction.
ITEM 4. PURPOSE OF TRANSACTION.
On August 28, 1996, Robert F.X. Sillerman converted, pursuant to the terms and
conditions of the Certificate of Incorporation of Multi-Market Radio, Inc.
(the "Company"), certain non-voting stock of the Company into 493,334 shares
of Class B Common Stock which has 10 votes per share, thereby giving Mr.
Sillerman voting control of the Company on most matters. Since the Company's
formation in 1993, Robert F.X. Sillerman, the Chairman of the Board of SFX
Broadcasting, Inc. ("SFX"), has held among the largest economic interest in
the Company. Mr. Sillerman's non-voting interest was comprised of 360,000
shares of the Company's Class C Common Stock and 133,334 shares of the
Company's Preferred Stock. The Class B Common Stock has ten votes per share
and the publicly-held Class A Common Stock has one vote per share on most
matters. As a result of such conversions, Mr. Sillerman may be deemed to be
the beneficial owner of shares representing approximately 53.5% of the
combined voting power of the Company. Under limited circumstances, including
the Company's pending merger with SFX (the "Merger"), the Class B Common Stock
will have only one vote per share. Accordingly, in connection with the
approval of the Merger, Mr. Sillerman holds shares representing 17.6% of the
combined voting power of the Company.
Of the 493,334 shares of Class B Common Stock held by Mr. Sillerman, 133,334
of such shares (the "Escrow Shares") are being held in escrow pursuant to an
agreement which allows Mr. Sillerman to vote such shares but provides that he
may not sell, transfer or otherwise dispose of them prior to July 29, 1998.
Pursuant to the terms of such agreement, the Escrow Shares will be released on
July 29, 1998, provided that certain conditions are met.
Mr. Sillerman's conversion of Class C Common Stock and Preferred Stock into
Class B Common Stock constitutes a change of control of the Company under the
Communications Act of 1934, as amended, and the rules and regulations
promulgated thereunder. Prior to such conversion, the change in control of the
Company was approved by the Federal Communications Commission.
Pursuant to the terms of the Company's Certificate of Incorporation, Mr.
Sillerman's right to convert his non-voting stock into Class B Common Stock
was dependent upon certain conditions, including the existence, after May 15,
1996, of an event of default in the Company's obligations under its credit
arrangements. The Company had defaulted under a covenant under its existing
senior credit facility with respect to limits on its annual corporate overhead
expenditures on several prior occasions, which defaults were waived by the
Company's senior lender. The Company again defaulted under this covenant in
the third quarter, which default was waived subsequent to Mr.
Page 5 of __ pages
<PAGE>
Sillerman's conversion. Mr. Sillerman's ability to assume voting control of
the Company was made possible as a result of therecent passage of the
Telecommunications Act of 1996, which eliminated the limits on the number of
radio stations one person or entity may own nationally and liberalized the
limits on the number of radio stations one person or entity may own locally.
The Merger agreement provides that the Company's senior credit facility will
be repaid in full.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) Robert F.X. Sillerman
Mr. Sillerman is deemed to beneficially own 227,000 shares of Class
A Common Stock, representing 6.9% of the outstanding shares of the
Class A Common Stock and 493,334 shares of Class B Common Stock
representing 77.9% of the oustanding shares of Class B Common Stock.
The 227,000 shares of Class A Common Stock which Mr. Sillerman
beneficially owns includes (i) 120,000 Escrow Shares and (ii) 40,000
shares issuable upon exercise of options that are currently
exercisable or will be exercisable within 60 days hereof. Excluding
the Escrow Shares, Mr. Sillerman would be deemed to beneficially own
107,000 shares, representing 3.3% of the outstanding shares of Class
A Common Stock.
Voting Power
Including the Class B Common Stock, Messrs. Sillerman, Ferrel and
Morrow would be deemed to beneficially own 53.5%, 1.5% and 13.7%,
respectively, of the voting power of the Company's outstanding
voting securities with respect to most matters and 17.6%, 1.3% and
3.6% with respect to the approval of the Merger.
(c) The information set forth under Item 4 of this Amendment No. 1 is
hereby incorporated by reference.
Page 6 of __ pages
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, we
certify that the information set forth in this statement is true, complete and
correct.
Date: September 11, 1996
/s/ Robert F.X. Sillerman
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Robert F.X. Sillerman
/s/ Michael G. Ferrel
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Michael G. Ferrel
/s/ Bruce Morrow
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Bruce Morrow
