An earlier version of this text incorrectly referenced a 2009 Reuters article about Clear Channel debt as having been reported more recently.
CC Media Holdings Inc. as well as its wholly-owned subsidiary, Clear Channel Communications (or “CCU”) said they’re “exploring a diverse array of alternatives in an effort to optimize their overall capital structure.” The announcement was issued on Christmas Eve.
Options on the table include taking on new incremental credit facilities; seeking changes to its debt agreements to allow it to take on more secured or unsecured debt and permit extensions of the maturities of some of its debt; offering new senior secured or unsecured debt; and a debt-for-debt exchange with existing holders.
Should CCU pursue new incremental credit facilities or other new debt, it anticipates the proceeds would be used to refinance existing debt, including the CCU legacy notes.
“There can be no assurance that any transaction will ultimately be pursued or that any transaction, if pursued, will be successful,” stated CC Media Holdings.
