Clear Channel Communications is taking advantage of the improving bond market to improve its balance sheet. Clear Channel Outdoor announced plans to sell $750 million in new senior notes. The net proceeds, some $730 million, will then be used to pay down the debt that Clear Channel Outdoor owes to its majority owner, Clear Channel Communications.
The transaction will positively impact the debt leverage of Clear Channel Communications and its parent company, CC Media Holdings, giving the company some more breathing room as it maneuvers to avoid triggering a technical default on any of its debt covenants.
