Clear Channel Communications restates secured asset-based facility

By Jennifer Chiou

New York, Dec. 28 - Clear Channel Communications, Inc. entered into a restatement agreement for its asset-based senior secured credit facility on Dec. 24 with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended agreement, availability under the facility, including letters of credit, will not exceed the greater of $535 million and the borrowing base, which equals 90% of Clear Channel eligible accounts receivable and the subsidiary borrowers.

Borrowings initially bear interest at Libor plus 175 basis points, with the margin ranging from 150 bps to 200 bps. There is an initial commitment fee of 37.5 bps per year, and this rate will be reduced to 25 bps per year when the average daily unused commitments for the prior quarter is less than 50% of the total commitments.

The loan comes due on Oct. 31, 2015 if there is more than $500 million owed under certain of the company's term loan credit facilities, and the maturity date will be May 3, 2016 if on May 2, 2016 greater than $500 million is outstanding under Clear Channel's 10¾% senior cash pay notes due 2016 and 11%/11¾% senior toggle notes due 2016.

If the company's borrowing availability is less than the greater of $50 million and 10% of the aggregate commitments under the amended facility for five consecutive business days, Clear Channel will be required to maintain a minimum fixed-charge coverage ratio of at least 1.00 to 1.00 for fiscal quarters ending on or after the liquidity event.

There are no borrowings outstanding under the facility.

Clear Channel is a San Antonio-based media and entertainment company.

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