Both Clear Channel Communications Inc. and CC Media Holdings Inc. are taking a close look at finances and are “exploring a diverse array of alternatives in an effort to optimize their overall capital structure.” It noted that any new borrowing will likely be used to service existing debt.
According to a release, the following avenues are under examination:
* the incurrence of new incremental credit facilities
* amendments to CCU’s existing credit facilities to, among other things, permit CCU and its subsidiaries, including Clear Channel Outdoor Holdings, Inc., to incur additional secured or unsecured indebtedness and permit extensions of the maturities of one or more of the revolving credit facilities and/or tranches of term loan facilities of CCU
* an offering of new senior secured or unsecured debt of CCU or its affiliates
* a debt-for-debt exchange with existing holders.
RBR-TVBR observation: Like all media companies that are over leveraged – when the money comes in the front door it goes out the debt service door. Very little is invested in their core business no less staff or improvements. Happens when bankers are in control.