Money: OUTFRONT Media is Doing What?
OUTFRONT is doing what?
OUTFRONT is creating $450 Million in debt at rate of 7.375% interest to pay off debt at a 6.25% interest rate which is not due until 2025. Why wouldn’t they wait until 2024 to do so? I suspect if they are confident the cost of that debt would be higher than the 7.375% would be one reason but couldn’t the cost of money over the next 12 month go the other way as well? Couple this move with the recent announced pending sale of their Canadian operations (OUTFRONT SELLS Canadian Assets to Bell) which will provide them with $300 million, begs the question; What is the strategy for requiring all that cash, now? Speculation is thick with conjecture. Best to not follow the money in this case but rather it’s best to get in front of the money. What are your thoughts?
OUTFRONT Media Announces Pricing of Senior Secured Notes Offering
NEW YORK, — OUTFRONT Media Inc. (NYSE: OUT) today announced that two of its wholly-owned subsidiaries priced a private offering of $450.0 million in aggregate principal amount of 7.375% Senior Secured Notes due 2031 (the “notes”). The notes will be sold at an issue price of 100.0% of the principal amount. The offering is expected to close on November 20, 2023, subject to customary closing conditions.
OUTFRONT Media intends to use the net proceeds from the notes offering to redeem all of its outstanding 6.250% Senior Notes due 2025 (the “2025 notes”) and to pay accrued and unpaid interest on the 2025 notes, if any, to, but excluding, the redemption date, to pay fees and expenses in connection with the notes offering and the 2025 notes redemption; and for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness.
The notes will be guaranteed on a senior secured basis by OUTFRONT Media Inc. and each of its direct and indirect subsidiaries that guarantees its senior credit facilities. The notes will also be secured by liens on substantially all of the assets of OUTFRONT Media Inc. and each of its direct and indirect subsidiaries that secure its senior credit facilities, subject to certain exceptions and permitted liens, including the exclusion of equity in Canadian subsidiaries that are pending sale.
The notes were offered and will be sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
About OUTFRONT Media Inc.
OUTFRONT leverages the power of technology, location, and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its technology platform, OUTFRONT will fundamentally change the ways advertisers engage audiences on-the-go.