Clear Channel Looks To Pay Down Debt With Proposed Private Offering of $500 Million Of Priority Guarantee Notes
February 21, 2013 at 7:07 AM (PT)
CLEAR CHANNEL COMMUNICATIONS intends to offer, subject to market and customary conditions, $500 million in aggregate principal amount of priority guarantee notes due 2021, in a private offering.
The Notes will be fully and unconditionally guaranteed on a senior basis by CLEAR CHANNEL's parent, CLEAR CHANNEL CAPITAL I, LLC, and all of CLEAR CHANNEL's existing and future wholly-owned domestic restricted subsidiaries. The Notes and the related guarantees will be secured by a lien on the capital stock of CLEAR CHANNEL and certain property and related assets.
The Notes will be issued under a new indenture and will not be part of the same class as CLEAR CHANNEL's existing priority guarantee notes due 2021.
CLEAR CHANNEL intends to use the proceeds of this offering together with the proceeds of borrowings under CLEAR CHANNEL's receivables based credit facility and cash on hand, to prepay all $847 million of loans outstanding under its term loan A facility and to pay fees and expenses in connection with the offering.