Clear Channel Awards Mays Family Restricted Shares Worth $10.4M
May 25, 2007 at 5:33 AM (PT)
CLEAR CHANNEL COMMUNICATIONS INC. granted restricted stock this week that could be worth $10.4 million to members of the MAYS family, reports DOW JONES MARKETWATCH. The MAYS' were granted a total of 265,000 restricted shares, according to filings released THURSDAY by the Securities and Exchange Commission. The grants to the MAYS family -- which includes Chairman L. LOWRY MAYS, CEO MARK MAYS and CFO RANDALL MAYS -- were part of their 2006 compensation. Other CLEAR CHANNEL executives and directors received smaller grants of restricted stock, according to separate SEC filings THURSDAY.
Typically, restricted shares are worthless for a period of time until they vest, but with the pending private-equity buyout a payout is guaranteed once the deal closes. According to the terms of the buyout led by THOMAS H. LEE and BAIN CAPITAL, restricted shares -- even if they haven't vested -- would be cashed out at the deal price.
If the MAYS family receives the buyout price of $39.20 a share for their restricted stock, they would receive $10.4 million in total. The new grants of restricted shares are a fraction of the MAYS family's ownership of CLEAR CHANNEL stock and options, which stood at nearly 40 million shares as of APRIL 2, or less than 8% of the company's outstanding shares. The family plans to go in with the private-equity group and acquire a stake in the reconstituted company.