Clear Channel Borrows $1.6 Billion
February 10, 2009 at 5:13 AM (PT)
CLEAR CHANNEL COMMUNICATIONS has borrowed approximately $1.6 billion left from a previous $2 billion line of revolving credit, reports NWAONLINE.COM. CLEAR CHANNEL revealed the latest borrowing in a MONDAY morning filing with the U.S. Securities and Exchange Commission.
CLEAR CHANNEL, a subsidiary of CC MEDIA HOLDINGS INC., borrowed the money to improve its cash flow with continuing uncertainty in credit markets and economic conditions, the filing stated. CC MEDIA HOLDINGS was formed in MAY 2007 by private-equity funds sponsored by BAIN CAPITAL PARTNERS and THOMAS H. LEE PARTNERS to buy the CLEAR CHANNEL business.
CC MEDIA HOLDINGS reported revenue of $1.7 billion in the third quarter ended SEPTEMBER 30th, a 4% decrease from the $1.8 billion reported for the same quarter in 2007.
CLEAR CHANNEL in late JANUARY announced a restructuring program to reduce costs by about $350 million per year, including the elimination of 1,850 full-time positions. That's about 9% of the company's employees.
CC MEDIA HOLDINGS and CLEAR CHANNEL OUTDOOR HOLDINGS both will release fiscal year and fourth-quarter earnings before the market opens MARCH 2nd.