Clear Channel LBO financing to include $17.375 billion credit facility, $4.1 billion bonds

By Sara Rosenberg

New York, Dec. 18 - Clear Channel Communications Inc. is planning on coming to market with a $17.375 billion credit facility and $4.1 billion in high-yield bonds to help back its leveraged buyout by Thomas H. Lee Partners, LP and Bain Capital Partners, LLC, according to a PREM14A recently filed with the Securities and Exchange Commission.

Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, RBS and Wachovia are the lead banks on the debt financing.

The credit facility will include a $1 billion receivables-backed revolver and $16.375 billion in senior secured bank debt, the filing said.

As a back-up for the bonds, the company has received a commitment for a $2.6 billion senior unsecured bridge loan and a $1.5 billion senior subordinated unsecured bridge loan.

About $4 billion in equity will also be used for LBO financing.

Under the agreement, Clear Channel shareholders will receive $37.60 in cash for each share of stock they hold. The total transaction value is $26.7 billion, including the assumption or repayment of about $8 billion of net debt.

The transaction is expected to be completed by the end of 2007, subject to the approval of Clear Channel's shareholders, required regulatory approvals and customary closing conditions. It does not require the consent of unsecured note holders.

Clear Channel is a San Antonio media and entertainment company specializing in "gone from home" entertainment and information services.

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