Here are two tables, prepared by Moorgate Capital Partners, which calculate the weighted average cost of debt and leverage (net debt/adjusted cashflow) for the public out of home companies as of June 2024. Some observations:
- Debt costs were stable at the three public OOH companies during the second quarter of 2024. Lamar has the cheapest weighted average debt costs at 5.0%. Clear Channel Outdoor has the most expensive weighted average debt at 7.4%.
- Debt/cashflow declined at all three public out of home companies during the second quarter of 2024. Billboard Insider thinks a sustainable Debt/Cashflow is 5-6 times cashflow for out of home companies. Clear Channel Outdoor is almost twice the sustainable level.
To obtain a copy of Moorgate’s 4Q 2023 OOH report contact Jeff Seddon, Vice President, Moorgate Capital Partners, jeff.seddon@moorgatepartners.com, 609-276-2508
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