The tender offers expired on December 23rd and Clear Channel Communications has bought back a considerable chunk of its public bonds. The company had tendered to buy back five issues of notes due from 2010 through 2013 at discounts to their face value. It is refinancing that debt with new borrowing under its term loan facility.
Clear Channel is buying back $252,403,000 face value of its 7.65% notes due in 2010 at $650 for each $1,000 face value. It is buying back $27,059,000 face value of its 6.25% notes due in 2011 at $320 for each $1,000 face value and $26,721,000 face value of its 4.4% notes also due in 2011 at $250 for each $1,000 of face value. It is buying back $24,200,000 face value of its 5% notes due 2012 at $200 for each $1,000 of face value and $24,261,000 face value of its 5.75% notes due in 2013 at $175 for each $1,000 of face value.
Moody’s Investors Service said the debt buyback would have no impact on Clear Channel’s credit ratings. “The tender represents a refinancing of senior unsecured debt with senior secured debt, and due to the discount price of the notes being repurchased, Clear Channel will benefit from a relatively modest amount of debt reduction over all which does not materially impact the company’s credit metrics or maturity profile,” said Moody’s.