Clear Channel Outdoor Holdings, Inc. Announces Proposed Private Offering of Senior Secured Notes

Rhea-AI Summary

Clear Channel Outdoor Holdings (NYSE:CCO) has announced a private offering of $2.05 billion in Senior Secured Notes, split between notes due 2031 and 2033. The notes will be guaranteed on a senior secured basis by the company's wholly owned domestic subsidiaries.

The offering proceeds, combined with cash on hand, will be used to redeem all outstanding 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028. The new notes will be secured by first-priority interests in company assets and second-priority interests in accounts receivable.

The offering is restricted to qualified institutional buyers under Rule 144A and international investors under Regulation S of the Securities Act.

Positive

• Refinancing of existing debt with new notes suggests proactive debt management
• Strong asset backing with first-priority security interests provides robust collateral support
• Extension of debt maturity profile from 2027/2028 to 2031/2033 improves financial flexibility

Negative

• Substantial debt level with $2.05 billion new notes offering indicates significant leverage
• Restricted offering availability limited to qualified institutional buyers may limit funding options
• Complex security structure with split priority between different asset classes

Insights

Fixed Income Specialist

CCO refinancing $2.05B debt with new secured notes, likely improving debt profile and extending maturities from 2027/2028 to 2031/2033.

Clear Channel Outdoor is making a significant debt refinancing move, offering $2.05 billion in Senior Secured Notes due 2031 and 2033. This transaction appears designed to replace the company's existing 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028 entirely.

The strategic timing of this refinancing is notable. By extending maturities from 2027/2028 to 2031/2033, management is creating a more favorable debt maturity ladder with breathing room of 6-8 years. This reduces near-term refinancing pressure and potential liquidity concerns.

Particularly significant is the likely reduction in interest expense. The existing 2028 notes carry a 9.000% interest rate, which was issued during challenging market conditions. Current market rates would likely enable substantially lower interest costs on the new issuance, potentially strengthening cash flow metrics.

The security structure is comprehensive, with the notes backed by first-priority security interests in most company assets and second-priority interests in accounts receivable. This robust collateral package should help secure favorable pricing while providing strong protections for noteholders.

This transaction indicates management's proactive approach to capital structure optimization rather than urgent refinancing needs, as both existing notes still have significant time before maturity. The company appears to be opportunistically accessing capital markets to strengthen its financial position.

SAN ANTONIO, July 21, 2025 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") announced today that it will offer, subject to market and customary conditions, $2,050.0 million in aggregate principal amount of Senior Secured Notes due 2031 (the "2031 Notes") and Senior Secured Notes due 2033 (the "2033 Notes", and, together with the 2031 Notes, the "Notes") in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act").

The Notes will be guaranteed on a senior secured basis by certain of the Company's wholly owned domestic subsidiaries (collectively, the "Guarantors"). The Notes and the related guarantees will be secured, subject to permitted liens and certain other exceptions, on a first-priority basis by security interests in all of the Company's and the Guarantors' assets securing the Company's existing senior secured credit facilities and existing senior secured notes (other than accounts receivable and related assets securing the Company's existing receivables-based credit facility (the "Receivables Facility")) and, on a second-priority basis, by accounts receivable and related assets securing the Receivables Facility.

The Company intends to use the net proceeds from the Notes, together with cash on hand, to redeem all of its outstanding 5.125% Senior Secured Notes due 2027 (the "Existing 2027 Secured Notes") and 9.000% Senior Secured Notes due 2028 (the "Existing 2028 Secured Notes") and pay related transaction fees and expenses.

The Notes and related guarantees will be offered only to persons reasonably believed to be "qualified institutional buyers" in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act and, to persons outside of the United States, in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act or the securities laws of any state or other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities and foreign securities laws.

This press release is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. This press release shall not constitute a notice of redemption under the indentures governing the Existing 2027 Secured Notes or the Existing 2028 Secured Notes.

About Clear Channel Outdoor Holdings

The Company is at the forefront of driving innovation in the out-of-home advertising industry. The Company's dynamic advertising platform is broadening the pool of advertisers using its medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of its diverse portfolio of assets, the Company connects advertisers with millions of consumers every month.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this release constitute "forward-looking statements," including within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include, but are not limited to, all statements other than those made solely with respect to historical facts and include, but are not limited to, statements regarding the offering, the redemption and the anticipated terms and use of proceeds of the Notes. The words "will," "believe," "expect," "anticipate," "continue," "look forward to," "well-positioned to," "remains," "further," "estimate," "forecast," "goals," "targets" and similar words and expressions are intended to identify such forward-looking statements. In addition, numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, whether or not the offering and/or the redemption will be consummated and the terms, size, timing and use of proceeds of the offering of the Notes. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company's ability to control or predict. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Clear Channel Outdoor Holdings, Inc.

FAQ

What is the size of Clear Channel Outdoor's (CCO) new notes offering in 2025?

Clear Channel Outdoor is offering $2.05 billion in aggregate principal amount of Senior Secured Notes, split between notes due 2031 and 2033.

What will CCO use the proceeds from the 2025 notes offering for?

The proceeds will be used to redeem all outstanding 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028, along with paying related transaction fees and expenses.

How are Clear Channel Outdoor's new 2031 and 2033 notes secured?

The notes are secured by first-priority interests in company assets securing existing credit facilities and notes (except receivables), and second-priority interests in accounts receivable securing the Receivables Facility.

Who can participate in CCO's 2025 notes offering?

The offering is restricted to qualified institutional buyers under Rule 144A and international investors under Regulation S of the Securities Act.

What existing notes is Clear Channel Outdoor (CCO) redeeming with this offering?

CCO is redeeming all outstanding 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028.