Clear Channel gets $375 million of fixed-, floating-rate term loans

By Sara Rosenberg

New York, March 25 – Clear Channel Outdoor Holdings Inc. closed on March 22 on $375 million of term loans due April 1, 2027, split between a $300 million fixed-rate tranche and a $75 million floating-rate tranche, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the fixed-rate term loan is 7.5% per annum, and pricing on the floating-rate term loan is SOFR plus 225 bps, subject to a floor rate of 525 bps per annum.

The term loans have no amortization.

The credit agreement, among other covenants and obligations, requires the company to make certain mandatory prepayments, subject to requirements and exceptions, and permits voluntary prepayments at its discretion.

Any principal payments made in connection with certain asset sales, a change of control or a similar transformative transaction may be prepaid at par and will not be subject to any premium. Otherwise, generally, prior to the first anniversary of the closing date, principal payments will be subject to a customary make-whole premium and, thereafter, will be made at 102 in year two and 101 in year three.

JPMorgan Chase Bank acted as the lead arranger and bookrunner and is the administrative agent.

Proceeds were used with cash on hand to redeem $375 million of 6 5/8% senior secured notes due 2025 and to pay certain related transaction fees and expenses.

Clear Channel International BV is the borrower.

Clear Channel is a San Antonio-based out-of-home advertising company.

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