Just how much debt did CC Media Holdings end up with when all was said and done with the Clear Channel buyout? The answer is $20.8 billion.
According to details in the quarterly report recently filed with the SEC, we can also conclude that Bain Capital and Thomas H. Lee Partners was quite successful in selling shares of the new holding company to other investors.
When the long-delayed buyout closed on July 30th, CC Media Holdings issued 23.6 million Class A shares to former Clear Channel Communications shareholders who elected to take stock in the new company rather than $36 per share in cash. The largest portion of that new stock went to Highfields Capital, which converted a big chunk of its stake for the maximum allowable 11,111,112 shares of CC Media’s publicly traded Class A stock.
That, buy the way, is way more CC Media stock than is now owned by Bain and TH Lee. They only hold about 600,000 shares. But those Class B shares retain the voting rights of all of the other shares that the two private equity funds sold off to other investors. Those non-voting shares are Class C, also not publicly traded, and total approximately 59 million.
Back to the debt. Once the buyout closed, the debt assumed from the old Clear Channel and the new debt taken on by CC Media amounted to approximately $20.8 billion. Here’s a summary of all of the new debt incurred:
• a $1.33 billion term loan A facility, with a maturity of six years;
• a $10.7 billion term loan B facility with a maturity of seven years and six months;
• a $695.9 million term loan C- asset sale facility, with a maturity of seven years and six months;
• $1.25 billion delayed draw term loan facilities with maturities of seven years and six months, up to $750 million of which may be drawn on or after the merger closing date to purchase or repay Clear Channel’s outstanding 7.65% senior notes due 2010, and the remainder of which will be available after the merger closing date to purchase or repay Clear Channel’s outstanding 4.25% senior notes due 2009;
• a $2.0 billion revolving credit facility with a maturity of six years, including a letter of credit sub-facility and a swingline loan sub-facility;
• a $783.5 million receivables based credit facility providing revolving credit commitments in an amount equal to the initial borrowing of $533.5 million on the merger closing date plus $250 million, subject to a borrowing base; and
• $980.0 million aggregate principal amount of 10.75% senior cash pay notes due 2016 and $1.33 billion aggregate principal amount of 11.00%/11.75% senior toggle notes due 2016.