As planned when it announced Q4 results last week, Clear Channel Communications has amended the terms of its senior credit facilities to allow it greater flexibility.
Here is Wednesday’s (2/16) announcement:
“Clear Channel Communications, Inc. (“CCU”) announced today that it has entered into agreements to amend its senior secured credit facilities and its receivables based credit facility (the “Amendments”) that will, among other things, permit CCU to request future extensions of the maturities of its senior secured credit facilities, provide CCU with greater flexibility in the use of its accordion provisions, provide CCU with greater flexibility to incur new debt, provided that such new debt is used to pay down senior secured credit facility indebtedness, and provide greater flexibility for CCU’s indirect subsidiary, Clear Channel Outdoor Holdings, Inc., and its subsidiaries to incur new debt (provided the incurrence of that new debt is otherwise permitted to be incurred by such subsidiaries).
The Amendments have been fully executed by CCU and the holders of a majority of the outstanding commitments under each of the facilities. The Amendments will become fully effective upon (in addition to other customary closing conditions) the payment of amendment fees, the reduction of revolving credit commitments under CCU’s receivables based credit facility and the prepayment of $500 million of indebtedness under CCU’s senior secured credit facilities, which CCU is financing through the issuance of new priority guarantee notes in a concurrent private placement that priced on February 15, 2011 and is expected to close on February 23, 2011.”