Clear Channel Closes On A $1 Bil Offering
February 23, 2011 at 1:42 PM (PT)
CLEAR CHANNEL COMMUNICATIONS, INC. has closed its previously announced offering of $1billion aggregate principal amount (increased from $750,000,000) of its 9.0% Priority Guarantee Notes due 2021. CCU combined the proceeds of this offering with cash on hand to repay $500 million of the indebtedness outstanding under its senior secured credit facilities, as well as expenses incurred in connection with concurrent amendments to its senior secured credit facilities and its receivables based credit facility. In addition, CCU will repay $500 million in aggregate principal amount of its 6.25% Senior Notes due 2011 at maturity with the proceeds of the offering.
The size of the offering was increased due to higher demand from institutional investors as well as investor confidence in the overall strength and competitive position of the Company’s businesses. The transactions enabled CCU to pay down outstanding debt and are expected to provide CCU with greater flexibility in managing its capital and resources and in operating its businesses going forward.