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
CBS Corporation Revenue Up 2% in Q2
Cox Media Group Names Rob Rohr as CMG Ohio Market Vice President
Alpha Media, Moberly Announces Mark Benkiel As Market Manager
July 27, 2016
iHeartMedia St. Louis Names A.J. SVP/Programming
Entercom Communications Reports Second Quarter Results
Apple Reports Third Quarter Results
Scott Shannon to Host NAB Marconi Radio Awards
Steph Lova Returns To WPGC/Washington, DC
DigitalRadioTracker.com Simplifies Broadcast Monitoring Worldwide
July 26, 2016
Brian Beasley Named Chief Operating Officer of Beasley Media Group, Inc.
2016 NAB Marconi Radio Award Finalists Announced
SiriusXM Reports Second Quarter 2016 Results
Alpha Media Clinton Names Mike Fell Market Manager
NextRadio Survey Reinforces How Radio Can Help Reach Voters
RAB Announces Staff Changes
July 25, 2016
Drake, U2, Britney Spears & More Announced For iHeartRadio Music Festival
Scotty K And Bret Head To Dallas For Mornings On KLIF
July 22, 2016
eQB NOW
Pandora Revenue Up in Second Quarter of 2016
John Crenshaw Named OM at Cumulus-Youngstown, OH
Alpha Media Savannah-Hilton Head Launches Throwback Station "G100"
July 21, 2016
iHeartMedia, Cumulus, Entercom, Cox, Sun Broadcast Group & Shazam Collaborate on New Audio Measurement
Justin Riley Named PD For Power 93.3 & 106.1 KISS FM-Seattle
Universal Music Publishing Promotes David Gray to EVP/Head of West Coast A&R
Steve Mann Named APD/Night Host at WGRR/Cincinnati
Music News
Soundtrack Companion to Springsteen Autobiography Announced
Quick Hits: The Beatles, Pink Floyd, JoJo, Ruth B
Beyoncé, Adele Lead MTV VMA Nominees
Rihanna, Kendrick Lamar and Metallica Headlining Global Citizens Festival
Drake Spends 11th Week at #1 on Billboard 200
Quick Hits: Rihanna, Flo Rida & Jason Derulo, Adele, Chance the Rapper, The 1975, David Bowie, Michael Hutchence
New David Bowie Box Set Includes Previously Unreleased Album
Quick Hits: Rihanna, KoRn, My Chemical Romance, Jennifer Hudson, Regina Spektor, Oasis
Temple of the Dog Announce First-Ever Tour
Quick Hits: The Beatles, Iggy Azalea, My Chemical Romance, Haim
Quick Hits: Alternative Press Music Awards / Marilyn Manson, Wilco, Beck, Led Zeppelin, Kesha
Drake Returns To #1 On Billboard 200
Kanye, Taylor Swift Feud Over "Famous" Lyric Again
Quick Hits: Coldplay, Schoolboy Q, Prophets of Rage, Celine Dion, Against Me!
Katy Perry Releases Olympics Anthem
FMQB NOW

Bill Tanner
SVP/Programming
SummitMedia

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!