• Lamar’s Low New Interest Rate

    Kudos to Lamar Media as they should have finalized their Term B loan package with JP Morgan and Wells Fargo yesterday.

    Insider reported earlier this week that they should be seeing rates of 1.5% over LIBOR and now that is confirmed.  Reuters stated yesterday that the interest coupon is among the tightest rates on a broadly syndicated loan since 2007 when energy company Kinder Morgan and Weight Watchers were among issuers able to lock in the same rate.

    The company’s 150 basis point coupon “will breach the low end of any other term loan B issued by a high-yield company heretofore,” a KDP Advisor analyst wrote in a research note Wednesday.

    Insiders Take: The market not only recognizes well managed companies but also understands the nature of risk and prices it accordingly.  This is terrific news for the OOH industry.  If you are a solid performing OOH company and have a strong relationship with a commercial bank, you should make sure your Lender hears about this.  This is an opportune time to be looking at maximizing rates and terms on your credit facilities.

     


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