Clear Channel Communications Inc., the radio and outdoor advertising company with about $20.7 billion of debt, is looking to extend the maturities on $1 billion of loans.
The broadcaster is asking lenders to push out the due date on the borrowings to July 2019 from January 2016, the company said today in a statement distributed by Business Wire.
Clear Channel, which has $4.2 billion in debt coming due in 2016, is also seeking to exchange bonds maturing in 2016 into new notes that will expire in 2021 with the same terms as debentures obtained in June, the company said. Free cash flow at the San Antonio-based company hasn’t exceeded $340.9 million in any year since its 2008 buyout by Bain Capital Partners LLC and Thomas H. Lee Partners LP.
A $3 billion term loan obtained last year and a $198.2 million term portion pay interest at 3.65 percentage points more than the London interbank offered rate, according to data compiled by Bloomberg.
The loan extension is subject to market conditions, according to the statement. The exchange offer will expire on Dec. 23.