Clear Channel Seeking Extensions Of Existing Term Loans
Part Of Its Continuing 'Capital Structure Improvement Efforts'
May 9, 2013 at 4:13 AM (PT)
CLEAR CHANNEL is seeking, subject to market and customary conditions, to extend "$1.5 billion in aggregate principal amount of outstanding term loans B and C due 2016 until 2018." The new extended term loans will have the same security and guarantee package as the outstanding term loans B and C.
CLEAR CHANNEL has large debt payments dues over the next several years. The debt dates back to when BAIN and THL bought CLEAR CHANNEL in 2008 -- as a $24 billion leveraged buyout. The company has $4.5 billion due in JULY 2014.
In FEBRUARY (NET NEWS 2/21) CLEAR CHANNEL offered $500 million in aggregate principal amount of priority guarantee notes due 2021, in a private offering.
The company said at the time that 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.
The company explained TODAY's move by saying, "these efforts are part of the Company's continuing efforts to optimize its overall capital structure. It will continue to explore a diverse array of other alternatives including, but not limited to, transactions which would extend maturities of its other debt, whether through a debt-for-debt exchange or other financing transaction. Should CCU pursue any such transaction, the terms, timing and structure of any transaction will depend on market conditions, and the amounts involved may be material. There can be no assurance that any transaction will ultimately be pursued or that any transaction, if pursued, will be successful."