Clear Channel loan amendment to permit maturity extensions passes

By Sara Rosenberg

New York, Feb. 16 - Clear Channel Communications Inc. has received lender approval of its credit facility amendment that allows for the future extension of senior secured maturities and the incurrence of new debt to pay down senior secured loans, according to a news release.

In addition, the amendment allows the company to use existing incremental term loan capacity by issuing notes in place of incurring term loans and permits the use of incremental term loans or notes for nine months following the scheduled maturity of its legacy notes to replace any cash used to repay the legacy notes.

The amendment will become fully effective upon the reduction of the receivables-based revolving credit facility to $625 million, the payment of amendment fees and the prepayment of $500 million of senior secured bank debt.

Funds for the repayment will come from a $1 billion notes offering that will also be used to repay at maturity $250 million of the company's 6¼% senior notes due 2011.

The new notes offering, which was upsized from $750 million and priced at par to yield 9%, is expected to close on Feb. 23.

Citigroup is the lead bank on the amendment.

Clear Channel is a San Antonio-based media and entertainment company specializing in mobile and on-demand entertainment and information services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.