Clear Channel Outdoor announces $2.05 billion notes offering

Published 21/07/2025, 14:00
Clear Channel Outdoor announces $2.05 billion notes offering

SAN ANTONIO - Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), a $586 million market cap outdoor advertising company with $6.65 billion in total debt, announced Monday it plans to offer $2.05 billion in Senior Secured Notes due 2031 and 2033 in a private offering exempt from registration under the Securities Act of 1933. According to InvestingPro data, the company operates with a significant debt burden, though its current ratio of 1.43 indicates sufficient liquidity to meet short-term obligations.

The notes will be guaranteed on a senior secured basis by certain of the company’s wholly owned domestic subsidiaries and will be secured by the company’s and guarantors’ assets.

Clear Channel intends to use the net proceeds, along 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, as well as pay related transaction fees and expenses.

The notes and related guarantees will be offered only to qualified institutional buyers under Rule 144A and to persons outside the United States in compliance with Regulation S under the Securities Act.

The offering is subject to market and customary conditions. The notes have not been registered under the Securities Act or securities laws of any state and may not be offered or sold in the United States without registration or an applicable exemption.

Clear Channel Outdoor Holdings is an out-of-home advertising company with digital billboards and displays across its portfolio, generating annual revenues of $1.51 billion and EBITDA of $493 million. According to the company’s press release statement, the offering is part of its debt management strategy. InvestingPro analysis shows the company maintains a FAIR overall financial health score, with detailed debt metrics and valuation insights available in the Pro Research Report, part of the comprehensive analysis covering 1,400+ US stocks.

In other recent news, Clear Channel Outdoor Holdings reported its Q1 2025 earnings, highlighting a mixed performance with an earnings per share (EPS) of -$0.1128, which surpassed the anticipated -$0.14. However, the company missed revenue expectations, reporting $334 million compared to the forecasted $337.17 million. Despite this, the revenue still marked a 2.2% increase from the previous year. During the same period, Clear Channel announced strategic moves, such as the sale of businesses in Mexico, Chile, Peru, and Europe North, which contributed to reducing its debt. The company maintains a positive outlook for the year, projecting mid-single-digit growth in consolidated revenue and adjusted EBITDA, supported by over 85% of Q2 revenue already booked. Additionally, Clear Channel’s recent Annual Meeting of Stockholders resulted in the election of directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025. Analyst perspectives from firms like Morgan Stanley and JPMorgan reflect a focus on Clear Channel’s digital transformation and cost-cutting measures. The company continues to emphasize its strategic focus on operational efficiency and digital growth, with significant interest from potential counterparties in its assets.

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