Clear Channel Prices $750 Million Priority Guarantee Notes - Analyst Blog

Clear Channel Outdoor Holdings Inc’s (CCO) controlling company Clear Channel Communications recently priced an aggregate of $750.0 million Priority Guarantee notes due to mature in 2022. The notes will carry an interest of 9%. Clear Channel Capital I, LLC along with other domestic restricted subsidiaries will act as the senior secured basis guarantor.

Clear Channel will utilize the proceeds from the offering to prepay $729.0 million of debt outstanding under its term loan B facility and $12.1 million of debt outstanding under its term loan C -asset sale facility.

Clear Channel’s debt issue was assigned a Caa1 rating along with a stable outlook by leading credit rating agency Moody’s. Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence in the stock as well as maintaining credit worthiness in the market.

The company has a relative steady liquidity position with $226.0 million in cash and cash equivalents as of Jun 30, 2014. Long term debt was $4,934.7 million, versus $4,935.4 million in the year-ago period. Interest expense stood at $88.2 million in the last reported quarter.    

Clear Channel aims to use innovative advertising concepts to expand its reach. At present, Clear Channel is concentrating on strengthening its business and expanding its client base. The company continues to bring new advertising opportunities to the market and aims to expand its business relationships with new advertisers. Focused expansion into emerging markets and financial flexibility are the primary driving factors for Clear Channel.

Clear Channel currently has a Zacks Rank #2 (Buy). Better-ranked stocks in the industry that are worth a look include CBIZ, Inc (CBZ), FTI Consulting, Inc. (FCN) and The Hackett Group, Inc. (HCKT), all carrying a Zacks Rank #2 (Buy).
 

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