Are Out of Home Clients Taking Longer to Pay?

Lamar Advertising recently amended the terms of its $175 million accounts receivable securitization program.  The amendment caught insider’s eye.  Here’s the disclosure language.

The Amendment increases the maximum three month average Delinquency Ratio generally to 13.00%, and up to 16.00% for up to two additional periods upon written notice from Lamar Media and increases the maximum three month average Dilution Ratio to 5.00% for the remaining term of the Accounts Receivable Securitization Program. The Amendment does not modify any other financial covenant.

Looks to Insider like some Lamar clients are taking longer to pay and Lamar asked its securitization lenders for a little more flexibility.   Not a big deal for Lamar because it is moderately leveraged and has excellent liquidity but it might suggest a trend in out of home clients stressed from covid.  Insider hasn’t seen a slowdown from his Circle City Outdoor clients but wonders what’s your experience.

How are your clients paying?  Have things gotten worse in the last couple months?  Let Insider know using the form below.

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