Clear Channel Looks To Revamp Debt, Radio Revs Up 10% In Q4
February 7, 2011 at 1:33 PM (PT)
CLEAR CHANNEL COMMUNICATIONS announced today that it is looking to get amendments to its senior secured credit facilities and its receivables-based credit facility to allow the company to ask for future extensions of the maturities of its senior secured credit facilities, have greater flexibility in the use of its accordion provisions, get more flexibility to incur new debt to pay down existing debt, and have greater flexibility for CLEAR CHANNEL OUTDOOR HOLDINGS, INC. to incur new debt. The amendments are conditioned on repayment of $500 million of senior secured credit facility debt, which will be repaid with money raised from a concurrent issuance of $750 million in priority guarantee notes due 2021, which will also pay off $250 million of its 6.25% Senior Notes due 2011 upon maturity.
The company says it has already obtained consent, through private negotiations with a number of its lenders, of a majority of the outstanding commitments under its existing credit facilities.
In addition, CC MEDIA HOLDINGS, the division including radio, saw revenues rise 8% to $1.63 billion in fourth quarter 2010, with radio up 10%, based on improved local and national sales. The company's consolidated loss narrowed from $268 million (including $78 million of impairment charges) to $86 million (with $15 million of impairment charges).
"We executed our strategic plan and returned our operations to growth in 2010," said President and CEO MARK MAYS. "We drove considerable improvement in the operating fundamentals of both our radio and outdoor platforms as we benefitted from a recovering global economy, increasing revenues and improving margins. This all led to healthy growth in our cash flows for 2010."
"Our global asset base remains well positioned to benefit from the ongoing advertising market recovery," MAYS added. "In the year ahead, we remain focused on driving innovation across our operations, increasing market share and maintaining a disciplined approach to cost-management. Given the trends we are seeing across our business and the operating leverage in our model, we are optimistic that we can generate improved results in the year ahead."
And the company announced that CLEAR CHANNEL OUTDOOR's fourth quarter revenues rose 4% to $793 million, with consolidated net income rising from a loss of $58 million (-18 cents/diluted share) to a gain of $7 million (0 cents/diluted share).In addition, the company announced that CLEAR CHANNEL OUTDOOR's fourth quarter revenues rose 4% to $793 million, with consolidated net income rising from a loss of $58 million (-18 cents/diluted share) to a gain of $7 million (0 cents/diluted share).