Clear Channel Outdoor Holdings Announces Pricing of Senior Secured Notes to Refinance Debt

Clear Channel Outdoor Holdings has priced a $1.15bn offering of 7.125% senior secured notes due 2031 and $900m of 7.5% senior secured notes due 2033. The notes will be guaranteed by certain subsidiaries and secured by all of the company's assets, subject to certain exceptions. The net proceeds will be used to redeem existing senior secured notes due 2027 and 2028. The offering is expected to close on August 4, 2025.

Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) has priced a significant debt offering comprising two tranches: $1.15 billion of 7.125% Senior Secured Notes due 2031 and $900 million of 7.500% Senior Secured Notes due 2033. The issuance is expected to close on August 4, 2025 [2].

The notes will be guaranteed by CCO's wholly owned domestic subsidiaries and secured by company assets. The proceeds, combined with cash on hand, will be used to redeem all outstanding 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028 [2].

This refinancing achieves two primary objectives: (1) extending debt maturities by 4-6 years, which provides enhanced financial flexibility and reduces near-term refinancing risk, and (2) adjusting the company's interest rate profile. The 2031 Notes carry a higher interest rate than the 2027 Notes they're replacing (7.125% vs. 5.125%), while the 2033 Notes have a lower rate than the 2028 Notes (7.500% vs. 9.000%) [2].

The weighted average interest rate on the new debt (7.29%) appears higher than the existing notes, suggesting increased interest expenses in exchange for extended maturities. The offering maintains the same collateral structure as existing debt, with first-priority security interest on most assets and second-priority interest on accounts receivable [2].

This refinancing reflects management's strategy to extend its debt runway while accepting current market interest rate conditions [2].

References:
[1] https://www.marketscreener.com/news/clear-channel-outdoor-holdings-inc-announces-private-offering-of-senior-secured-notes-ce7c5cdcd98ff526
[2] https://www.stocktitan.net/news/CCO/clear-channel-outdoor-holdings-inc-announces-pricing-of-senior-9nmi595xhfss.html