Clear Channel Outdoor Holdings, Inc. Announces Pricing
of Senior Secured Notes Due 2031 and Senior Secured Notes Due 2033

‘Better to give away $40 million a year than lights out’

‘Extend and pretend’

On the news of the CCO’s new Debt announcement, our Billboard Correspondent wants answers.  He went to two of the best and brightest in the OOH financial sector for insights and their opinion. They agreed to reply anonymously. Here are the questions and their answers below:

BB: Q1.-What is your assessment of this financial move and situation for Clear Channel?
“Extend and pretend.  Good move to live another day”. —‘Unnamed debt and equity Director of Finance at a major merger and acquisitions corporation’

BB: Q2.- This CCO move seems like a poor one, mortgaging the future even further down the road.

Here is the relevant summary as I see it—
an offering (the “Offering”) of $1,150.0 million aggregate principal amount of 7.125% Senior Secured Notes due 2031 (the “2031 Notes”) and $900 million aggregate principal amount of 7.500% Senior Secured Notes due 2033 (the “2033 Notes” and, together with the 2031 Notes, the “Notes

The Company intends to use the net proceeds from the Offering, together with cash on hand, to redeem all of its outstanding 5.125% Senior Secured Notes due 2027 (the “Existing 2027 Secured Notes”) and 9.000% Senior Secured Notes due 2028 (the “Existing 2028 Secured Notes”) and/or pay related transaction fees and expenses.

BB: So let me see if I have this correct. They are essentially creating debt of 2,050. Million at 7.125 and 7.5 % while paying down older debt. Why now, when the two notes to be paid down are not due until ’27 and ’28, respectively? I understand retiring the 9% but why the 5.125% when they have another 2 years of lower interest?

—OOH ‘financial analyst’—”It’s actually a smart move.  If the world blows up in 2026, their ability to refi in the face of a deep recession or pandemic is very low.  And if that happens…its lights out.  But 200 basis points on $2B of debt…is an extra 40 mill a year.  They probably said, hey better to give away $40 mill a year than lights out.”

They probably said, hey better to give away $40 mill a year than lights out

SAN ANTONIO,– Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) announced today that it priced an offering (the “Offering”) of $1,150.0 million aggregate principal amount of 7.125% Senior Secured Notes due 2031 (the “2031 Notes”) and $900 million aggregate principal amount of 7.500% Senior Secured Notes due 2033 (the “2033 Notes” and, together with the 2031 Notes, the “Notes”). The issuance and sale of the Notes is expected to be completed on August 4, 2025, subject to customary closing conditions.

The Notes will be guaranteed on a senior secured basis by certain of the Company’s wholly owned domestic subsidiaries (collectively, the “Guarantors”). The Notes and the related guarantees will be secured, subject to permitted liens and certain other exceptions, on a first-priority basis by security interests in all of the Company’s and the Guarantors’ assets securing the Company’s existing senior secured credit facilities and existing senior secured notes (other than accounts receivable and related assets securing the Company’s existing receivables-based credit facility (the “Receivables Facility”)) and, on a second-priority basis, by accounts receivable and related assets securing the Receivables Facility.

The Company intends to use the net proceeds from the Offering, together with cash on hand, to redeem all of its outstanding 5.125% Senior Secured Notes due 2027 (the “Existing 2027 Secured Notes”) and 9.000% Senior Secured Notes due 2028 (the “Existing 2028 Secured Notes”) and/or pay related transaction fees and expenses.

The Notes and related guarantees are being offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and, to persons outside of the United States, in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act or the securities laws of any state or other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act, and applicable state securities and foreign securities laws. This press release is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The Offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. This press release shall not constitute a notice of redemption under the indentures governing the Existing 2027 Secured Notes or the Existing 2028 Secured Notes.

About Clear Channel Outdoor Holdings
The Company is at the forefront of driving innovation in the out-of-home advertising industry. The Company’s dynamic advertising platform is broadening the pool of advertisers using its medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of its diverse portfolio of assets, the Company connects advertisers with millions of consumers every month.

- Advertisement -