Clear Channel Deal Near Collapse
March 25, 2008 at 2:26 PM (PT)
The WALL STREET JOURNAL is reporting that the $19 billion CLEAR CHANNEL deal is in trouble as "the private equity firms behind the deal and the banks financing it failed to resolve their differences over the terms of the credit agreement."
Apparently, the THOMAS H. LEE and BAIN CAPITAL PARTNERS private-equity firms have yet to iron out the financial details with banks CITIGROUP INC., MORGAN STANLEY, DEUTSCHE BANK AG, CREDIT SUISSE GROUP, ROYAL BANK OF SCOTLAND GROUP PLC and WACHOVIA CORP. One source told the WSJ, "The sponsors do not want to do this deal ... No one wants to do this deal except for the seller."
The sponsors do not want to do this deal ... No one wants to do this deal except for the seller.
If this deal fails to close, there is $500 million breakup fee that will have to be paid.
The deal price is $39.20 per share and word of the deal's demise is sending down the price of CLEAR CHANNEL stock. At the end of trading, CCU was selling for 32.56 a share, down 1.89 (5.49%) -- but it took a huge dive in after-hours trading, falling below $26 a share. Check out the latest numbers by clicking here.
So far, no comment from CLEAR CHANNEL, THL or BAIN.