Lamar Advertising Company Prices Private Offering of Senior Notes

Rhea-AI Summary

Lamar Advertising Company (NASDAQ: LAMR) has announced a private placement of $400 million in 4 7/8% Senior Notes due 2029. The net proceeds are estimated to be around $394.5 million and will primarily be used to repay existing debt under its credit facility, with any remaining funds allocated for working capital or general corporate purposes. The offering is expected to close around May 13, 2020, subject to standard closing conditions.

Positive

• The offering raises approximately $394.5 million for debt repayment and working capital.
• Funding to strengthen the company's balance sheet by repaying existing debt.

Negative

• There are risks associated with market conditions affecting corporate debt securities.
• Forward-looking statements highlight uncertainties that could impact completion of the offering.

BATON ROUGE, La., May 11, 2020 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) announced today that its wholly owned subsidiary, Lamar Media Corp., has agreed to sell $400.0 million in aggregate principal amount of 4 7/8% Senior Notes due 2029 (the “Notes”) through an institutional private placement.  The proceeds, after the payment of fees and expenses, to Lamar Media of this offering are expected to be approximately $394.5 million.  Subject to customary closing conditions, the closing of this offering is expected on or about May 13, 2020.

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 135c 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 are being 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 the 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 are 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 the amount of Senior Notes Lamar is offering?

Lamar is offering $400 million in Senior Notes due 2029.

How much funding will Lamar receive after fees from the Senior Notes offering?

Lamar expects to receive approximately $394.5 million after fees and expenses.

What will Lamar use the proceeds from the Senior Notes offering for?

The proceeds will be used to repay debt under the credit facility and for working capital or general corporate purposes.

When is the expected closing date for Lamar's Senior Notes offering?

The closing is expected on or about May 13, 2020.

What risks are associated with the Senior Notes offering?

There are uncertainties regarding market conditions that could affect the offering's completion.