Update – Clear Channel Outdoor Announces Pricing of Offering of Senior Notes Due 2028

As a followup to our Tuesday article, Clear Channel, in a press release, announced that it priced its Senior Note offering of $1billion, due 2028, at an interest rate  of 7.750%. The issuance and sale of the Notes is expected to be completed on February 17, 2021, subject to customary closing conditions. The Company intends to use the proceeds from the Notes, together with cash on hand, to (i) cause Clear Channel Worldwide Holdings, Inc., a subsidiary of the Company, to redeem $940 million in aggregate principal amount of its 9.25% Senior Notes due 2024 and (ii) pay related transaction fees and expenses.

The reduction of 1.5% in interest costs, as we explained on Tuesday, will have a very real and positive impact on free cash flow, somewhere in the range of $14.1 million in annual interest savings.

Clear Channel should be reporting 4th quarter results soon, but for now, here is a breakdown of Balance Sheet highlights from their 3rd quarter report.

We will be very interested in reviewing 4th quarter financial results as the Clear Channel story is beginning to see some financial daylight.  Leverage will still probably be higher than the Company would like, but interestingly, the market is starting to respond positively to some of CCO’s management decisions.  Look at the stock value, which has doubled, over the last 6 months.

 

More to come after earnings are released later this month.

 

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