Clear Channel Outdoor Holdings Announces $2.05bln Senior Secured Notes Offering

Clear Channel Outdoor Holdings has priced a $1.15bn offering of 7.125% Senior Secured Notes due 2031 and $900m of 7.500% Senior Secured Notes due 2033. The Notes will be guaranteed on a senior secured basis by certain of the Company's wholly-owned domestic subsidiaries. The issuance and sale of the Notes is expected to be completed on August 4, 2025, subject to customary closing conditions.

Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) has priced a $2.05 billion offering of Senior Secured Notes. The issuance consists of $1.15 billion in 7.125% Senior Secured Notes due 2031 and $900 million in 7.500% Senior Secured Notes due 2033. The notes will be guaranteed on a senior secured basis by certain of the Company's wholly-owned domestic subsidiaries. The issuance and sale of the Notes are expected to be completed on August 4, 2025, subject to customary closing conditions [1][2][3].

The Notes will be secured 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, and on a second-priority basis by accounts receivable and related assets securing the Receivables Facility [1][2][3].

The Company intends to use the net proceeds from the Notes, together with cash on hand, to redeem all of its outstanding 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028, and to pay related transaction fees and expenses [1][2][3].

The Notes and related guarantees will be 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 and, to persons outside of the United States, in compliance with Regulation S under the Securities Act [1][2][3].

This strategic refinancing move by Clear Channel Outdoor Holdings aims to extend maturities from 2027/2028 to 2031/2033, creating a more favorable debt maturity ladder with breathing room of 6-8 years. This reduction in near-term refinancing pressure and potential liquidity concerns is likely to improve the company's overall financial position [3].

The security structure of the new Notes is comprehensive, with first-priority security interests in most company assets and second-priority interests in accounts receivable, which should help secure favorable pricing while providing strong protections for noteholders [3].

References:
[1] https://www.prnewswire.com/news-releases/clear-channel-outdoor-holdings-inc-announces-proposed-private-offering-of-senior-secured-notes-302509529.html
[2] https://www.marketscreener.com/news/clear-channel-outdoor-holdings-inc-announces-private-offering-of-senior-secured-notes-ce7c5cdcd98ff526
[3] https://www.stocktitan.net/news/CCO/clear-channel-outdoor-holdings-inc-announces-proposed-private-vr0a8m5pzamm.html