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Lamar Advertising Company (NASDAQ:LAMR) announced Wednesday the completion of a $400 million institutional private placement of 5.375% senior notes due 2033 through its wholly owned subsidiary, Lamar Media Corp. The transaction, finalized on September 25, resulted in net proceeds of approximately $393.5 million, according to a statement filed with the Securities and Exchange Commission. The new debt adds to Lamar’s existing total debt of $4.77 billion, with InvestingPro data showing a debt-to-equity ratio of 5.27x and current ratio of 0.58x, indicating tight liquidity conditions.
The notes, which mature on November 1, 2033, bear interest at an annual rate of 5.375%, payable semi-annually beginning May 1, 2026. The offering was made in the United States to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. With a market capitalization of $12.37 billion and annual EBITDA of $1.01 billion, Lamar maintains a GOOD overall financial health score according to InvestingPro analysis, which offers comprehensive financial metrics and 7 additional key insights about the company’s performance.
Lamar Media and its subsidiary guarantors entered into an indenture with U.S. Bank Trust Company, National Association, acting as trustee. The indenture contains covenants that limit Lamar Media and its restricted subsidiaries’ ability to incur additional debt, issue preferred stock, guarantee certain indebtedness, make restricted payments, create liens, enter into affiliate transactions, restrict subsidiary payments, merge or consolidate, and sell assets. These limitations are subject to specified exceptions and qualifications.
The notes may be redeemed by Lamar Media under certain conditions. Up to 40% of the aggregate principal amount may be redeemed before November 1, 2028, at a price of 105.375% plus accrued and unpaid interest, using proceeds from certain public equity offerings. Additionally, the company may redeem some or all of the notes before November 1, 2028, at par plus accrued interest and a make-whole premium. After November 1, 2028, the notes are redeemable in whole or in part at specified prices. If a change of control occurs and the rating of the notes is reduced, Lamar Media may be required to offer to repurchase the notes at 101% of principal plus accrued interest.
Events of default under the indenture include missed payments, certain covenant breaches, cross-defaults on other significant indebtedness, and specified bankruptcy or insolvency events.
This information is based on a statement filed with the Securities and Exchange Commission.
In other recent news, Lamar Advertising Company has completed a significant $1.1 billion refinancing effort through its subsidiary, Lamar Media Corp., to strengthen its financial standing. This refinancing includes a $400 million institutional private placement of 5.375% Senior Notes due in 2033 and a $700 million Term Loan B facility with a seven-year term. The Term Loan B is priced at 150 basis points over SOFR. Additionally, Lamar Media has amended its existing credit agreement to incorporate the new Term B Loans, which have been used to repay $600 million of previously outstanding Term B Loans and reduce the balance on its revolving credit facility.
Lamar Advertising also announced plans to raise approximately $400 million through an institutional private placement of senior notes. Meanwhile, JPMorgan has adjusted its price target for Lamar Advertising to $112 from $125, maintaining a Neutral rating on the stock. This revision follows a decrease in Lamar’s shares after the company lowered its 2025 AFFO guidance and reported weaker-than-expected performance in its core Billboard segment.
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