Lamar Advertising Company Announces Proposed Private Offering of Senior Notes

Rhea-AI Summary

Lamar Advertising Company (Nasdaq: LAMR) is planning to raise approximately $400 million through a private placement of senior notes by its subsidiary, Lamar Media Corp. The funds will primarily be used to repay existing debt under the revolving portion of its senior credit facility. Any remaining proceeds will support general corporate purposes or working capital needs. The offering is subject to market conditions and is directed at qualified institutional buyers, with no registration under the Securities Act.

Positive

• Raising $400 million to improve financial structure by repaying existing debt.
• Potential for better working capital and corporate flexibility.

Negative

• Debt refinancing may imply existing financial pressure.
• Market conditions could affect the successful placement of the notes.

BATON ROUGE, La., May 11, 2020 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) announced today that it is seeking to raise approximately $400.0 million through an institutional private placement of senior notes (the “Notes”) by its wholly owned subsidiary, Lamar Media Corp., subject to market conditions.

Lamar Media intends to use the proceeds of this offering, after the payment of fees and expenses, (i) to ‎ repay indebtedness outstanding under the revolving portion of its senior credit facility‎, and (ii) the remainder, if any, to fund working capital needs or for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, any securities, nor shall there be any sales of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act of 1933, as amended (the “Securities Act”).

The Notes and related guarantees subject to the private placement have not been registered under the Securities Act or any state securities laws, and will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions in reliance on Regulation S. Unless so registered, the Notes and related guarantees may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains forward-looking statements regarding Lamar Media’s ability to complete this private placement and its application of net proceeds. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those results indicated in the forward-looking statements include uncertainties relating to market conditions for corporate debt securities generally and for the securities of advertising companies and for Lamar Media in particular.

This news release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, securities.

Company Contact:

Buster Kantrow
Director of Investor Relations
Lamar Advertising Company
(225) 926-1000
bkantrow@lamar.com

FAQ

What is Lamar Advertising Company's plan for the $400 million senior notes offering?

Lamar Advertising Company plans to use the $400 million from the senior notes offering primarily to repay existing debt and for general corporate purposes.

What risks are associated with Lamar Advertising's private placement of senior notes?

The primary risks include uncertainties in market conditions for corporate debt securities and the specific challenges faced by advertising companies like Lamar.

Who can participate in the senior notes offering from Lamar Advertising?

The senior notes are being offered to qualified institutional buyers and non-U.S. persons in offshore transactions.

How will Lamar Advertising's plan to repay debt affect its shareholders?

Repaying debt could improve the financial health of Lamar Advertising, potentially benefiting shareholders by reducing interest obligations and enhancing cash flow.