Clear Channel plans new credit facility for LBO by Thomas H. Lee, Bain

By Sara Rosenberg

New York, Nov. 16 - Clear Channel Communications Inc. plans to obtain a new credit facility to help back its leveraged buyout by Thomas H. Lee Partners, LP and Bain Capital Partners, LLC, according to a market source.

Morgan Stanley, Citigroup, Deutsche Bank, Credit Suisse, RBS and Wachovia are the lead banks on the deal.

Details on the credit facility, such as timing and structure, are unavailable at this time, the source added.

Under the terms of the agreement, Clear Channel shareholders will receive $37.60 in cash for each share of stock they hold. The total transaction value is $26.7 billion, including the assumption or repayment of about $8 billion of net debt.

The transaction is transaction expected to be completed by the end of 2007, subject to the approval of Clear Channel's shareholders, requisite regulatory approvals and customary closing conditions. It does not require the consent of unsecured note holders.

Clear Channel may solicit competing bids from third parties through Dec. 7, and may negotiate with parties that submit competing proposals by that time until Jan. 5, 2007.

Clear Channel is a San Antonio, Texas, media and entertainment company specializing in "gone from home" entertainment and information services.

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