Clear Channel Receives Approval on Debt Plan.
Clear Channel says it has gotten consent from lenders to allow it to, among other things, exchange term loans for new securities, up to $5 billion, and gain more flexibility in prepaying some term loans. The Amendment is expected to become effective concurrently with the closing of an offer to exchange a portion of the term loans under the cash flow credit facilities for new debt securities to be issued in a private placement by CCU. Here's the full and technical text from the Clear Channel release:
"With this approval, Clear Channel will: permit exchange offers of term loans for new debt securities in an aggregate principal amount of up to $5.0 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."
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