Clear Channel Sells $2.5 Billion Of Debt

$2.5 Billion Raised

CLEAR CHANNEL's outdoor unit has completed raising $2.5 billion in the high-yield debt market, removing concerns about the company's short-term liquidity. REUTERS reports that proceeds will be used to repay debt owed to CLEAR CHANNEL.

Private equity firms THL PARTNERS and BAIN CAPITAL, which own CLEAR CHANNEL, were burdened with about $20 billion debt as of SEPTEMBER 30th, faced declining advertising spending due to the financial crisis. Subsidiary CLEAR CHANNEL OUTDOOR reported a 19% decrease in revenues in NOVEMBER over the previous year. 

CLEAR CHANNEL said in a regulatory filing that it expects to be in compliance with its covenants under its senior secured credit facilities for the remainder of 2009 and through 2010. The notes were priced earlier this month at par to yield 9.25 percent, or 602 basis points over U.S. Treasuries. 

GOLDMAN SACHS, CITI, CREDIT SUISSE, DEUTSCHE BANK and MORGAN STANLEY were the joint bookrunners for the sale.

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