NEW YORK, Nov. 7, 2023 /PRNewswire/ — OUTFRONT Media Inc. (NYSE: OUT) today announced that two of its wholly-owned subsidiaries priced a private offering of $450.0 million in aggregate principal amount of 7.375% Senior Secured Notes due 2031 (the “notes”). The notes will be sold at an issue price of 100.0% of the principal amount. The offering is expected to close on November 20, 2023, subject to customary closing conditions.
OUTFRONT Media intends to use the net proceeds from the notes offering to redeem all of its outstanding 6.250% Senior Notes due 2025 (the “2025 notes”) and to pay accrued and unpaid interest on the 2025 notes, if any, to, but excluding, the redemption date, to pay fees and expenses in connection with the notes offering and the 2025 notes redemption; and for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness.
The notes will be guaranteed on a senior secured basis by OUTFRONT Media Inc. and each of its direct and indirect subsidiaries that guarantees its senior credit facilities. The notes will also be secured by liens on substantially all of the assets of OUTFRONT Media Inc. and each of its direct and indirect subsidiaries that secure its senior credit facilities, subject to certain exceptions and permitted liens, including the exclusion of equity in Canadian subsidiaries that are pending sale.
The notes were offered and will be sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor shall there be any sale of the notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Insider’s Take: As of 9/30/23 OUTFRONT held $2.05 billion of Senior Notes with due dates from 2025 through 2030. Here is a breakdown of that debt and the interest rates.
The new debt will replace $400 million of debt due in 2025, but at a higher price point (7.375% versus 6.25%). Times ( and interest rates) have changed from the last few years with continued rate pressure from the Fed. Insider is anticipating the rate market will be the new normal for a while. OUTFRONT is thinking strategically, and their Canada asset sale is looking like a good move. OUTFRONT’s stock value was unchanged for the day.
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