Moorgate Capital Partners produces an outstanding quarterly report on the of home advertising industry.  Look at this chart on M&A activity by quarter for the past three years.  Lamar Advertising has been active in the M&A markets.   Outfront and Clear Channel Outdoor have been sitting out.  OUTFRONT has been focused on reducing leverage and improving efficiency.  Clear Channel is overleveraged and has no ability to finance acquisitions.

The second chart shows that debt costs have been stable for the three public out of home companies.   Clear Channel Outdoor’s borrowing rate is higher than Outfront or Lamar’s borrowing rate because leverage is higher.

If you have questions contact Jeff Seddon, Director, Moorgate Capital Partners, jeff.seddon@moorgatepartners.com, 609-276-2508

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