CC Media Holdings To Reorganize Debt
Includes Clear Channel Comm; Clear Channel Outdoor
December 24, 2010 at 9:06 AM (PT)
Just as the holiday is about to begin and the news was quieting down, CC MEDIA HOLDINGS, INC. and its wholly-owned subsidiary, CLEAR CHANNEL COMMUNICATIONS, INC. have announced TODAY (12/24) that they are "exploring a diverse array of alternatives in an effort to optimize their overall capital structure." In other words, they are looking to reorganize their debt.
"The alternatives may include (i) the incurrence of new incremental credit facilities, (ii) amendments to CCU’s existing credit facilities to, among other things, permit CCU and its subsidiaries, including CLEAR CHANNEL OUTDOOR HOLDINGS, INC., to incur additional secured or unsecured indebtedness and permit extensions of the maturities of one or more of the revolving credit facilities and/or tranches of term loan facilities of CCU, (iii) an offering of new senior secured or unsecured debt of CCU or its affiliates and/or (iv) a debt-for-debt exchange with existing holders<" its statement read.
"Should CCU pursue the incurrence of any new incremental credit facilities or the issuance of any other new debt, it currently anticipates that the proceeds would ultimately be used to refinance existing indebtedness, including the CCU legacy notes. Should CCU pursue any such incurrence or issuance, the terms, timing and structure of any transaction will naturally 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."