Clear Channel has issued $2 billion in senior secured notes to retire existing debt. Here’s the press release together with an analysis by SignValue.
SAN ANTONIO, July 21, 2025 /PRNewswire/ — Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) announced today that it priced an offering (the “Offering”) of $1,150.0 million aggregate principal amount of 7.125% Senior Secured Notes due 2031 (the “2031 Notes”) and $900 million aggregate principal amount of 7.500% Senior Secured Notes due 2033 (the “2033 Notes” and, together with the 2031 Notes, the “Notes”). The issuance and sale of the Notes is expected to be completed on August 4, 2025, subject to customary closing conditions.
The Notes will be guaranteed on a senior secured basis by certain of the Company’s wholly owned domestic subsidiaries (collectively, the “Guarantors”). The Notes and the related guarantees will be secured, subject to permitted liens and certain other exceptions, on a first-priority basis by security interests in all of the Company’s and the Guarantors’ assets securing the Company’s existing senior secured credit facilities and existing senior secured notes (other than accounts receivable and related assets securing the Company’s existing receivables-based credit facility (the “Receivables Facility”)) and, on a second-priority basis, by accounts receivable and related assets securing the Receivables Facility.
The Company intends to use the net proceeds from the Offering, together with cash on hand, to redeem all of its outstanding 5.125% Senior Secured Notes due 2027 (the “Existing 2027 Secured Notes”) and 9.000% Senior Secured Notes due 2028 (the “Existing 2028 Secured Notes”) and/or pay related transaction fees and expenses.
SignValue’s Take: The refinance retires pending maturities but increases interest expense by $18 million because $1.25 billion of the refinance pays off cheap debt. The refinance does nothing to solve the bigger issue which is that Clear Channel Outdoor’s debt/cashflow of 10:1 twice as high as Lamar or OUTFRONT. It will take 13 years of 5%/year cashflow growth for Clear Channel to reduce debt to less than 5:1. We think even 5%/year cashflow growth will be hard for Clear Channel Outdoor to sustain. Lamar grew cashflow 6.4%/year for the past 10 years but also spent $2.8 billion on acquisitions and $1.3 million on capexp. Clear Channel can’t follow the acquisition/capexp playbook because 90% of its cashflow (EBITDA) goes to interest while Lamar spends only 18% of cashflow (EBIDTA) on interest.
If you have questions, contact one of SignValue’s experienced analysts for a free and confidential consultation at info@signvalue.com or call 480-657-8400
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