Fitch rates Clear Channel notes CC, loan CCC

Fitch Ratings said it assigned a CC/RR6 rating to Clear Channel Communications, Inc.'s proposed additional exchange notes due February 2021 and assigned a CCC/RR4 to the proposed term loan E.

The agency also affirmed the issuer default ratings and issue ratings of Clear Channel and Clear Channel Worldwide Holdings, Inc.

The outlook for Clear Channel was revised to negative from stable. The outlook for Clear Channel Worldwide's issuer default rating remains stable.

On Nov. 25, Clear Channel announced it is offering to exchange any and all of the $448 million in 10¾% cash pay unsecured notes and the $340 million in 11%/11¾% paid in kind toggle unsecured notes with new exchange notes that expire in February 2021. These notes are intended to be issued as additional notes under the indenture governing the existing 2021 notes that were issued in June 2013 and will be treated as a single class with the existing 2021 notes for all purposes under the indenture. The new notes will carry a 12% per annum cash coupon plus a 2% per annum PIK. The notes will have materially the same covenant provisions and benefit from the same subordinated guarantee that support the outstanding notes.

In addition, Clear Channel announced that it is seeking to extend $1 billion in aggregate principal amount of term loans B and C due January 2016 to July 2019. The new term loan E will have the same security and guarantee package as the outstanding term loans.

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