SAN ANTONIO - Clear Channel Outdoor (NYSE:CCO) Holdings, Inc. (NYSE: CCO), an innovator in the out-of-home advertising industry, has announced a significant financial restructuring through its subsidiary, Clear Channel International B.V. (CCIBV). The company reported on Monday that CCIBV has entered into a credit agreement on March 22, 2024, which establishes a new term loan facility totaling $375.0 million.
This new financial arrangement, managed by JPMorgan Chase (NYSE:JPM) Bank, N.A. as the administrative and collateral agent, and J.P. Morgan SE as the lead arranger and bookrunner, is structured in two tranches.
The first tranche, amounting to $300.0 million, carries a fixed interest rate of 7.5% per annum. The second, a $75.0 million tranche, is subject to a floating interest rate pegged to the Term SOFR benchmark plus 2.25%, with a floor rate of 5.25% per annum.
The term loan facility is set to mature on April 1, 2027, and does not require scheduled amortization payments before this maturity date. CCIBV has the ability to make both mandatory and voluntary prepayments under certain conditions.
Notably, prepayments related to specific events such as asset sales or a change of control can be made at par value without incurring a premium, particularly after the first anniversary of the closing date.
Proceeds from the term loan facility, along with available cash, were used to redeem all of CCIBV's outstanding 6.625% senior secured notes due in 2025, which also had an aggregate principal amount of $375.0 million. The redemption was accompanied by the payment of associated transaction fees and expenses.
Clear Channel Outdoor Holdings is known for its expansive advertising platform, which includes a mix of over 330,000 print and digital displays in 19 countries. The company emphasizes its commitment to innovation through digital billboards, data analytics, and programmatic capabilities that aim to simplify and measure advertising campaigns.
The information regarding the new term loan facility is detailed further in a Current Report on Form 8-K filed with the Securities and Exchange Commission, based on a press release statement.
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