Although majority-controlled by Norman Lear, Act III Broadcasting was financed by a large group of other Wall Street interests and shareholders. The company was seeded by Lear, but quickly added the General Motors Pension Fund as a shareholder. Debt was provided by GE Capital.Broadcast Executive The company was comprehensively refinanced in 1989 with a $100m bond offering taken down by Prudential Insurance. The Prudential notes were themselves re-financed following the recovery from the 1989-92 recession, in 1993 at a lower rate.NY Times December 13, 1993 Act III's judicious use of leverage in an industry historically financed with limited partnerships was considered a model of leveraged finance and resulted in a case study at the Darden School of Business at the University of Virginia. Leveraged Acquisitions: Act III Broadcasting The eventual exit at over a 600% return on investment marks one of the most successful broadcast ventures in industry history. In 1991, it was reported that Lear, through Act III Communications, controlled 35% of the common stock of Act III Broadcasting and 80% of the voting interests."Abry to Expand" Broadcasting Magazine September 9, 1991 Prior to the sale in 1997/98 the company undertook various buyouts of minority interests which increased the Act III Communications/Lear stake to an undetermined, but higher level.Broadcast Executive
