The CC Finco subsidiary of Clear Channel Communications has completed the bond buyback tenders it announced at the beginning of the month. The bottom line is that it has been able to wipe $412 million face value of debt off its books for a payout of $111 million.
The tenders expired at midnight Thursday, August 27th for six issues of outstanding notes. No holders tendered any of their 10.75% Senior Cash Pay Notes due 2016, for which the company had offered $320 per $1,000 of face value.
CC Finco had offered to pay up to $200 million to buy back the various issues. The bonds actually tendered came up short of that maximum, so all tenders were accepted.
Here’s how it went down:
CC Finco has accepted for purchase all of the 6.25% Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 6.25% Notes validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $20,204,000, representing approximately 2.69% of outstanding 6.25% Notes. The 6.25% Notes purchased by CC Finco will be acquired for its account and will remain outstanding. The total consideration payable per $1,000 principal amount of 6.25% Notes is $530.00 (plus accrued and unpaid interest as described in the CC Finco Offer to Purchase, dated July 31, 2009 (the “Offer to Purchase”)), which includes the early tender premium described in the Offer to Purchase.
CC Finco has accepted for purchase all of the 4.40% Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 4.40% Notes validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $56,038,000, representing approximately 22.42% of outstanding 4.40% Notes. The 4.40% Notes purchased by CC Finco will be acquired for its account and will remain outstanding. The total consideration payable per $1,000 principal amount of 4.40% Notes is $490.00 (plus accrued and unpaid interest as described in the Offer to Purchase), which includes the early tender premium described in the Offer to Purchase.
CC Finco has accepted for purchase all of the 5.00% Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 5.00% Notes validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $19,949,000, representing approximately 6.65% of outstanding 5.00% Notes. The 5.00% Notes purchased by CC Finco will be acquired for its account and will remain outstanding. The total consideration payable per $1,000 principal amount of 5.00% Notes is $400.00 (plus accrued and unpaid interest as described in the Offer to Purchase), which includes the early tender premium described in the Offer to Purchase.
CC Finco has accepted for purchase all of the 5.75% Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 5.75% Notes validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $116,395,000, representing approximately 23.28% of outstanding 5.75% Notes. The 5.75% Notes purchased by CC Finco will be acquired for its account and will remain outstanding. The total consideration payable per $1,000 principal amount of 5.75% Notes is $370.00 (plus accrued and unpaid interest as described in the Offer to Purchase), which includes the early tender premium described in the Offer to Purchase.
CC Finco has accepted for purchase all of the 5.50% Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 5.50% Notes validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $199,545,000, representing approximately 26.61% of outstanding 5.50% Notes. The 5.50% Notes purchased by CC Finco will be acquired for its account and will remain outstanding. The total consideration payable per $1,000 principal amount of 5.50% Notes is $300.00 (plus accrued and unpaid interest as described in the Offer to Purchase), which includes the early tender premium described in the Offer to Purchase.
RBR/TVBR tallied the total face value of the bonds tendered and accepted to be $412,131,000, with CC Finco paying a total of $110,909,250 to buy them.
RBR/TVBR observation: Smoke ’em if you got ’em. Cash is king and for any broadcasters who have cash on hand, this is a great time to buy back public bonds and even bank debt at discounted prices. The problem, of course, is that many broadcasters don’t have cash on hand to take advantage of the situation and probably no one has enough cash to do all of the buying back of debt that they’d like to.
