19X plans new debt financing for purchase of CKX

By Sara Rosenberg

New York, June 1 - 19X Inc. plans on getting new debt financing to help fund its buyout of CKX Inc., according to an 8-K filed with the Securities and Exchange Commission Friday.

19X is a private company owned and controlled by Robert F.X. Sillerman, chairman and chief executive officer of CKX, and Simon R. Fuller, a director of CKX and the chief executive officer of 19 Entertainment Ltd., a wholly owned subsidiary of CKX.

Under the agreement, CKX shareholders will get $13.75 per share in cash and a share of stock in FX Luxury Realty LLC, an affiliate of Sillerman that has significant real estate interests in Las Vegas and has entered into licenses to use certain intellectual property rights of CKX associated with Elvis Presley and Muhammad Ali in the development of real estate and attraction based projects, for each share of CKX common stock that they hold.

Equity financing for the deal is expected to be about $600 million.

Credit Suisse acted as the advisor to 19X on this transaction.

CKX is a New York-based company engaged in the ownership, development and commercial use of entertainment content.

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