• Lamar Advertising Raises $250 million of 5.75% senior notes.

    BATON ROUGE, La., Jan. 23, 2019 – Lamar Advertising Company (LAMR) announced today that it is seeking to raise approximately $250 million through an institutional private placement of additional 5 3/4% Senior Notes due 2026 (the “Notes”) by its wholly owned subsidiary, Lamar Media Corp (“Lamar Media”). The Notes are being offered as additional notes to the existing $400 million aggregate principal amount of ‎5 3/4% Senior Notes due 2026‎ that Lamar Media issued on January 28, 2016 (the “Existing Notes”). Other than with respect to the date of issuance, issue price and CUSIP number, the Notes will have the same terms as the Existing Notes. Once the Notes are registered and exchanged for exchange notes or become freely tradeable under Rule 144, Lamar Media expects that the Notes and the Existing Notes will share a single CUSIP number and thereafter be fungible. The Notes will be guaranteed on a senior unsecured basis by substantially all of Lamar Media’s domestic subsidiaries. The completion of the proposed offering depends upon several factors, including market conditions.

    Lamar Media intends to use the proceeds of this offering, after the payment of fees and expenses, to repay a portion of the borrowings outstanding under its revolving credit facility.

    Insider’s take:  Lamar funded the Fairway transaction with short-term borrowings under its revolving credit facility and its accounts receivable securitization program.  Using long-term debt to reduce short-term borrowings frees room for Lamar to continue making acquisitions.  Lamar and Outfront have a 200 basis point borrowing advantage over Clear Channel Outdoor as you can see in the table below.

    Senior Debt Rates at September 2018

    Debt Lamar Outfront Clear Channel Outdoor
    Sr Revolver 4.27%
    Senior Notes 5.38%
    Senior Notes 5.75%
    Sr Notes due 2022 5.25%
    Sr Notes due 2024 5.63%
    Sr notes due 2025 5.88%
    Term Loan 4.10%
    Revolver 4.50%
    Sr Notes due 2022 6.50%
    Sr Sub Notes 7.65%
    Average 5.13% 5.07% 7.08%

     


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