Clear Channel Extends Consent-Payment Deadline ... Closing Near?
March 19, 2008 at 2:07 PM (PT)
CLEAR CHANNEL COMMUNICATIONS late TUESDAY said it extended the consent-payment deadline on a buyout-related tender offer to MARCH 24th 8a from MARCH 20th, reports CNN MONEY. CLEAR CHANNEL noted that it extended the date on which the pricing for its outstanding 7.65% senior notes due 2010 as well as its AMFM OPERATING INC. unit's outstanding senior notes due 2008 will be established to MARCH 20th at 2p.
The company also extended the date on which the tender offers are scheduled to expire to MARCH 24th at 8a. Each of the price determination date, the offer expiration date and the consent payment deadline is subject to extension, the company said.
The extended deadline may signal the long-awaited sale of CLEAR CHANNEL isn't as close as investors hope, but sources close to ALL ACCESS say that the closing is still on track. Rumors that the deal was closing did help drive the radio giant's stock price higher, REUTERS reports. The price rose 8% TUESDAY to $34.89, which is still a ways below the $39.20 a share that private equity firms THOMAS H. LEE PARTNERS and BAIN CAPITAL PARTNERS LLC agreed to pay last year. The debt financing for the buyout is a remaining hurdle, with the private-equity buyers and banks funding the deal haggling over terms.
While CLEAR CHANNEL has long said that it expects the sale to the private-equity group to close by the end of the first quarter, exclusive sources to ALL ACCESS indicate that the deal could close as soon as FRIDAY, MARCH 21st.
By the end of the day WEDNESDAY, with the TUESDAY's closing rumors barely a memory, CCU stock fell 3.20 (8.94%) to 32.50. For details, please click here.