Clear Channel Outdoor prices $2.05 billion in senior secured notes

SAN ANTONIO - Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), a $572 million market cap outdoor advertising company with annual revenues of $1.51 billion, announced Monday it has priced an offering of $2.05 billion in senior secured notes in two tranches. The offering consists of $1.15 billion of 7.125% Senior Secured Notes due 2031 and $900 million of 7.500% Senior Secured Notes due 2033.

The issuance and sale of the notes is expected to close on August 4, 2025, subject to customary closing conditions, according to the company’s press release.

The notes will be guaranteed on a senior secured basis by certain of Clear Channel’s wholly owned domestic subsidiaries. Security for the notes includes first-priority interests in assets securing the company’s existing senior secured credit facilities and existing senior secured notes, with second-priority interests in accounts receivable and related assets securing the company’s existing receivables-based credit facility.

Clear Channel intends to use the net proceeds from the offering, 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, and to pay related transaction fees and expenses. According to InvestingPro data, the company operates with a significant debt burden of $6.65 billion, though it maintains a healthy current ratio of 1.43, indicating sufficient liquidity to meet short-term obligations.

The notes and related guarantees are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to persons outside the United States in compliance with Regulation S. The securities have not been registered under the Securities Act or applicable state securities laws.

Clear Channel Outdoor Holdings operates in the out-of-home advertising industry with a portfolio of digital billboards and displays across various markets. The company generated $493 million in EBITDA over the last twelve months, and InvestingPro analysis indicates the stock is currently undervalued. For deeper insights into CCO’s valuation and 6 additional exclusive ProTips, plus a comprehensive Pro Research Report covering what really matters about this stock, consider exploring InvestingPro’s advanced analytics platform.

In other recent news, Clear Channel Outdoor Holdings Inc. reported its first-quarter earnings for 2025, showing a slight beat on earnings per share (EPS) but a miss on revenue expectations. The company posted an EPS of -$0.1128, surpassing the forecasted -$0.14, while revenue came in at $334 million, slightly below the anticipated $337.17 million. Despite the revenue miss, Clear Channel’s consolidated revenue marked a 2.2% increase from the previous year. The company highlighted its strong liquidity position with $568 million at the end of the quarter. Additionally, Clear Channel announced a $2.05 billion notes offering as part of its debt management strategy, intending to use the proceeds to redeem existing notes due in 2027 and 2028. In other developments, all director nominees were elected at the company’s Annual Meeting of Stockholders, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the year. The company also emphasized its focus on digital transformation, with digital revenue growing by 6.4%, and the implementation of AI across operations. Looking forward, Clear Channel maintains a positive outlook for 2025, projecting mid-single-digit growth in both consolidated revenue and adjusted EBITDA.

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