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 CCU’s 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 CCU’s 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 lender’s 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
eQB NOW
The Week In Review: 4/20-4/24
iHeartRadio Now Available On The Apple Watch
CÜR Media Names Jay Clark Chief Content Officer
CBS Radio Stations Awarded With 21 Regional Edward R. Murrow Awards
In Brief - April 24, 2015
April 23, 2015
Warner Bros. Promotes Rob Goldklang To SVP/Alternative Promotion
CBS Radio Houston Names Charese Fruge VP/Programming And Operations Manager
Cat Thomas Named VP/Programming, CBS Radio Las Vegas
CBS Radio Las Vegas Names New PDs At KLUC & KMXB
iHeartMedia's First-Ever Soundfront
Pandora Reports Q1 2015 Financial Results
In Brief - April 23, 2015
April 22, 2015
Nielsen Reports Solid First Quarter
Shazam For Radio Adds David De Busk
KIIS FM Announces Wango Tango Pre-Show Performers
In Brief - April 22, 2015
April 21, 2015
Linda Little Named Market President For iHeartMedia Phoenix
iHeartRadio Now Available On Xbox One
Impact Radio Group Ups Garfield To PD at KWYD/Boise
Clip Interactive Activates FM Chip Listening On Additional Devices
In Brief - April 21, 2015
April 20, 2015
Scott Hopeck Named President of iHeartMedia New York
Tim Leiweke And Roger Faxon To Join Pandora Board of Directors
TuneIn Launches On Apple Watch And Apple CarPlay
In Brief - April 20, 2015
Music News
Black Keys' Dan Auerbach Announces New Solo Project
The Week In Review: 4/20-4/24
Quick Hits: Grateful Dead / John Mayer, Saturday Night Live, Frank Ocean, System Of A Down
Quick Hits: Lady Gaga, Estelle, MusiCares MAP Fund benefit concert, Hard Summer Festival, Faith No More, The Ting Tings
Teen Vine Star Shawn Mendes Tops Billboard 200
Quick Hits: Britney Spears & Iggy Azalea, The Grateful Dead, Ed Sheeran, R.E.M., The Smashing Pumpkins, Pitchfork Music Festival, Musicfest NW
Charli XCX, Bleachers Plot Eclectic Tour
Quick Hits: Billboard Music Awards, Walk Off the Earth, Miami Concert Series, Louis Tomlinson, Neil Young, AC/DC, Mötley Crüe
Green Day, Ringo & More Inducted Into The Rock Hall Of Fame
Muse Plans Drones Live Events
Quick Hits: iHeartRadio Summer Pool Party, Hozier, Panic! At The Disco, Foo Fighters, Neil Young / WayHome Music and Arts Festival
Quick Hits: Giorgio Moroder / Britney Spears, Green Day, Black Sabbath, Deftones & Incubus
The Week In Review: 4/13-4/17
FEATURED MUSIC NEWS CONTENT
FMQB Retro-Active: Aerosmith's Joey Kramer Talks Donington DVD, The Beatles, and Rockin and Roastin Coffee
FMQB NOW

Rick Cummings
Emmis Pres.
of Programming

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!