Yesterday Lamar announced it was issuing $400 million in privately placed senior notes.   Here is an excerpt from the press release:

Baton Rouge, LA — May 11, 2020 — Lamar Advertising Company (Nasdaq: LAMR) announced today that it is seeking to raise approximately $400.0 million through an institutional private placement of senior notes (the “Notes”) by its wholly owned subsidiary, Lamar Media Corp., subject to market conditions.

Lamar Media intends to use the proceeds of this offering, after the payment of fees and expenses, (i) to repay indebtedness outstanding under the revolving portion of its senior credit facility, and (ii) the remainder, if any, to fund working capital needs or for general corporate purposes.

Later in the day Lamar priced the offering at 4 7/8% with a 2029 maturity.

Insider’s Take:   Lamar completed a significant $2.35 billion debt refinance in February.  Lamar borrowed $535 million on bank lines in March to protect liquidity in the face of Covid-19.  Looks to Insider like Lamar extended maturities from 2022 to 2029 by refinancing the credit line with a term loan. In times of volatility long term debt is more predictable than a short term bank line of credit.

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