Clear Channel Offers $2 Billion Deal To Lenders, Pursuing Credit Amendments
October 12, 2012

Clear Channel Communications announced a pair of financial moves this morning. First,  Clear Channel has commenced a private offer to exchange up to $2 billion aggregate principal amount of term loans under its cash flow credit facilities for a like principal amount of newly issued CCU nine percent priority guarantee notes due 2019. The exchange offer, which is only available to eligible lenders under CCUís cash flow credit facilities, is being made pursuant to an Offering Circular dated October 12, 2012, and is exempt from registration under the Securities Act of 1933.

Concurrently with the exchange offer, CCU is pursuing amendments to certain provisions of the cash flow credit facilities. Lenders must consent to the Amendment in order to validly submit their term loans for exchange in the exchange offer.

Eligible lenders of term loans under CCUís cash flow credit facilities must submit a letter of participation on or prior to 12:00 noon, New York City time, on October 19, 2012, unless extended, in order to be eligible to receive Notes in the exchange offer. The amount of each lenderís term loans that will be accepted in exchange for Notes will be subject to reduction on a pro rata basis as described in the Offering Circular.

Additionally, Clear Channel announced that it is pursuing amendments to its cash flow credit facilities. The Amendment would, among other things: permit exchange offers of term loans for new debt securities in an aggregate principal amount of up to $5 billion; provide CCU with greater flexibility to prepay tranche A term loans; following the repayment or extension of all tranche A term loans, permit below par non-pro rata purchases of term loans pursuant to customary Dutch auction procedures whereby all lenders of the class of term loans offered to be purchased will be offered an opportunity to participate; following the repayment or extension of all tranche A term loans, permit the repurchase of junior debt maturing before January 2016 with cash on hand in an amount not to exceed $200 million; combine the term loan B, the delayed draw term loan 1 and the delayed draw term loan 2 under the cash flow credit facilities; preserve revolving credit facility capacity in the event CCU repays all amounts outstanding under the revolving credit facility; and eliminate certain restrictions on the ability of Clear Channel Outdoor Holdings, Inc. and its subsidiaries to incur debt.

The Amendment requires the consent of a majority of the outstanding loans and commitments under the cash flow credit facilities and a majority of the outstanding loans of each class of term loans under the cash flow credit facilities to become effective. Affiliates of Bain Capital, LLC and Thomas H. Lee Partners, L.P., which are affiliates of CCU, are existing holders of term loans under the cash flow credit facilities and have committed to consent to the Amendment. In addition, CCU has obtained the commitment to consent to the Amendment of certain funds and accounts managed by each of Angelo Gordon & Co., Apollo Global Management, LLC, Canyon Capital Advisors LLC and Oaktree Capital Management LP. These lenders and the Sponsors collectively represent approximately 46% of the outstanding loans and commitments under the cash flow credit facilities. The lenders' consent to the Amendment will be due by 12:00 noon, New York City time, on October 19, 2012.




 
Breaking News
Epic Records Names Breyon Prescott Head Of Urban A&R
The Week In Review: 2/23-2/27
Westwood One Rolls Out National Expansion Of The Jonathon Brandmeier Show
In Brief - February 27, 2015
February 26, 2015
Mel Karmazin To Be Honored By The Broadcasters Foundation Of America
Cox Media Group Names Rachel Williamson Director/Digital Revenue Development
New Generation Radio Launches Virtual Jock
Benztown Teams With Vipology To Bring Cost-Effective Websites To Radio
In Brief - February 26, 2015
February 25, 2015
iHeartMedia Announces Executive Changes
NAB Statement On Introduction Of Local Radio Freedom Act In House, Senate
Report: Radioís 2015 Digital Revenue Poised For Double-Digit Growth
Coleman Insights, Jacobs Media Explore The Great Pyramids Of Radio
Republic Records Names Patch Culbertson Director of A&R
In Brief - February 25, 2015
February 24, 2015
106.1 KISS FM Changes Name To 106.1 LAURA FM
In Brief - February 24, 2015
February 23, 2015
Industry-Wide Consumer Awareness Campaign Launches For NextRadio
Jake Wisely Appointed CEO Of The Bicycle Music Company
Westwood One Hires Douglas Johnston As EVP/Sales
The Bobby Bones Show Brings Ask Anything's Fan-Driven Artist Chats To Country Fans Nationwide
Salem Communications Corporation Becomes Salem Media Group
In Brief - February 23, 2015
February 20, 2015
eQB NOW
The Week In Review: 2/16-2/20
Music News
All Apologies From Kanye West
The Week In Review: 2/23-2/27
FMQB Retro-Active: Aerosmith's Joey Kramer Talks Donington DVD, The Beatles, and Rockin and Roastin Coffee
Quick Hits: Mumford & Sons, Madonna, Beale Street Music Festival, Tool
Ed Sheeran, Sam Smith Rule BRIT Awards
Quick Hits: Foo Fighters, Carly Rae Jepsen, The Airborne Toxic Event, Echosmith, Finding Neverland Album with John Legend & Rita Ora
Imagine Dragons Roar To Top Debut
Quick Hits: U2, Firefly Festival, Nico & Vinz, Lady Gaga, Three Days Grace, Free Press Summer Festival
Sam Smith Set For Another U.S. Road Trip
Quick Hits: One Direction, Lorde, Brandon Flowers, Redfoo, Fuji Rock Festival
Quick Hits: John Legend & Common / The Oscars, Ed Sheeran, In This Moment, Passion Pit, Kaaboo Del Mar Festival, Pixies
Kanye Talks New Album & More With Power 105.1's Breakfast Club
The Week In Review: 2/16-2/20
Quick Hits: Foo Fighters / Sonic Highways, Coldplay, Squamish Valley Music Festival
Lil Wayne Working Up Free Weezy Album
FMQB NOW

Rob Roberts
OM/Cumulus Atlanta

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!