Outdoor advertising company Clear Channel Outdoor Holdings Inc. (CCO) announced Monday the pricing of $2.5 billion of senior notes due 2017. The company intends use the proceeds to repay the debt it owes to its parent company.
The Phoenix, Arizona-based company's indirect, wholly-owned subsidiary, Clear Channel Worldwide Holdings, Inc., has issued $500 million aggregate principal amount of Series A senior notes due 2017 and $2 billion of aggregate principal amount of Series B Senior Notes also due 2017.
The notes offered are ranked equally or par passu to all the unsubordinated debt of Clear Channel Worldwide and the guarantees of the Notes will rank these notes equally in right of payment to all unsubordinated debt of the Guarantors, including indebtedness owed by the company to Clear Channel Communications, Inc., the parent of Clear Channel Outdoor Holdings, and Clear Channel Worldwide.
The notes are guaranteed by Clear Channel Outdoor Holdings, Clear Channel Outdoor, Inc., a wholly-owned subsidiary of Clear Channel Outdoor Holdings, and certain other existing and future domestic subsidiaries of Clear Channel Outdoor Holdings.
Clear Channel Worldwide expects to loan the proceeds from the issuance and sale of the Notes to Clear Channel Outdoor Holdings, which is expected to use a portion of the net proceeds to repay approximately $2.0 billion aggregate principal amount of indebtedness owed to Clear Channel Communications.
An inter-company note will mature in August 2010 and a new bond issue could help prevent the parent-company Clear Channel from violating covenants on its secured debt.
During mid-November 2006, private-equity firms, Thomas H. Lee Partners and Bain Capital agreed to buy Clear Channel outdoor in a $19.35 billion leveraged buyout, which was closed a little more than a year back in July 2008.
Earlier, the company had planned to issue $750 million in aggregate principal amount of senior notes, however, after discussion the company on Friday announced the launch of an issue offer of $2.5 billion.
CCO is currently trading at $11.13, up $0.07 or 0.63% on the NYSE.
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