Clear Channel Worldwide Holdings plans to tap the market with a $2.725 billion two-part bond deal to fund bond tenders launched this morning via Goldman Sachs and Credit Suisse. The new deal is split into a $735.75 million tranche of series A notes due 2022 and a $1.99 billion issue of series B notes due 2022.
Proceeds from the deal will fund tender offers launched today for the company’s $500 million issue of 9.25% series A notes due 2017 and the $2 billion outstanding of 9.25% series B notes due 2017. Bondholders are offered total consideration per note of $1,074.38, which includes an early tender premium of $30 for notes delivered by 5:00 p.m. EDT, on Nov. 16. Any notes not tendered will be called, according to the company. Both are callable beginning Dec. 15 at 106.94.
The two issues were placed as a two-part transaction in 2009 to repay debt. The two issues carry different indentures: the series A tranche has no restricted-payments covenant, while a $2 billion series B tranche allows the parent to sweep cash flow, SEC filings show.
Trades in the targeted notes this morning at 107.75 are within the recent context for the B/B1 paper, trade data shows.
Clear Channel Worldwide Holdings is a subsidiary of Clear Channel Outdoor Holdings. Clear Channel Outdoor reported third-quarter revenue of $731 million and OIBDAN of $179 million, down from $748.5 million and $189 million respectively in the same period year ago.
Parent Clear Channel Communications last week completed a loan-for-bond swap, issuing a $2 billion issue of 9% secured notes due 2019 with 2.5-years of call protection. The exchange emerged after lenders approved the broadcaster’s amendment request allowing it to exchange up to $5 billion of its loans for bonds, among other provisions that provide it with flexibility to address its capital structure. The company said that it received over $8 billion of commitments under the loan-for-bond exchange. – Jon Hemingway