There’ll be no skipping out on the closing table this time around. Clear Channel Communications announced Friday that the banks involved in its pending buyout have put their debt financing in escrow, as required under the legal settlement that ended litigation over the buyout led by Bain Capital and Thomas H. Lee Partners. The banks involved are Ditigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, Royal Bank of Scotland and Wachovia. The Bank of New York is holding the money as escrow agent. Clear Channel now has to schedule a shareholder vote on the revised deal, which will pay them $36 per share, rather than $39.20.
“Today’s actions significantly increase the certainty that our merger will close. Cash on the barrelhead for one of the largest LBOs in history is an enormous win for our shareholders,” said Clear Channel CEO Mark Mays.