Clear Channel Prices Its Latest Note Offering
June 9, 2011 at 11:59 AM (PT)
CLEAR CHANNEL COMMUNICATIONS has announced the pricing of its previously announced offering of $750 million in aggregate principal amount of 9.0% priority guarantee notes due 2021. The Notes will be issued at a price of 93.845% of their principal amount plus accrued interest from FEBRUARY 23rd, 2011. The Notes will have identical terms to, and will be treated as a single class with, the $1.0 billion in aggregate principal amount of 9.0% priority guarantee notes due 2021 issued on FEBRUARY 23rd, 2011.
CCU intends to use $203.8 million of the proceeds to repay at maturity a portion of its 5% legacy notes which mature in MARCH 2012, with the remaining $500 million for general corporate purposes.
That $500 may be used to repay indebtedness, including repaying indebtedness outstanding under CCU’s revolving credit facilities. In addition, such proceeds may be used in connection with one or more future transactions involving a permanent repayment of a portion of CCU’s senior secured credit facilities as part of CCU’s long-term efforts to optimize its capital structure.
CCU intends to use cash on hand to pay fees and expenses in connection with the offering.