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Sunday, July 5, 2009

NY Post says Clear Channel is "running out of options" on financing

The paper explains that subsidiary Clear Channel Outdoor owes its parent $2.5 billion, and that’s money Clear Channel Media needs to remain in compliance, after last year’s $20 billion-plus deal to go private under Bain Capital and Thomas H. Lee Partners. About three weeks ago, Goldman Sachs began pre-marketing two new debt issues for Clear Channel Outdoor totaling $3 billion. But it’s apparently pulled back on that effort, and some Clear Channel Outdoor shareholders object to the publicly-traded outdoor unit being raided by its parent for cash. CCO is paying San Antonio 6% on the money owes, but the proposed new issues would be at 10% and 14%. The Post hears from one Wall Streeter who says “I heard it was impossible to sell.” Read the Post story here.

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