DOW JONES NEWSWIRES
Clear Channel Outdoor Holdings Inc. (CCO) said it considering
either a debt sale or a swap in order to refinance a maturing note
held by its parent, Clear Channel Communications Inc.
It added the amounts involved in any financing alternatives "may
be material," with the timing and structure of any transaction
depending on market conditions.
Clear Channel Outdoor didn't disclose the size of the maturing
note and a company spokeswoman wasn't immediately available for
comment.
The move comes as Clear Channel Communications feels the weight
of $22 billion in debt that CC Media Holdings, the vehicle used by
private-equity firms Bain Capital LLC and Thomas H. Lee Partners
LP, took on to privatize Clear Channel Communications last year in
a $17.9 billion deal. Clear Channel Communications, and thus CC
Media, owns about 89% of Clear Channel Outdoor.
In addition, advertising woes that were first seen in newspapers
and magazines have been spreading to television and now to
billboards, which had been holding up well. Two weeks ago, Clear
Channel Outdoor said it swung to a first-quarter loss on a 25% drop
in revenue.
Shares closed Monday at $3.60 and were inactive in premarket
trading Tuesday. The stock is down 41% this year.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com
