Clear Channel's $1.5 Billion Bond Transaction Finances AMFM Debt Redemption

News   Clear Channel's $1.5 Billion Bond Transaction Finances AMFM Debt Redemption Clear Channel Communications, which owns SFX Entertainment, has conducted a major bond transaction, selling $1.5 billion of notes through Credit Suisse First Boston and Salomon Smith Barney to finance the debt redemption of various AMFM notes including AMFM's "9 percent subordinated notes due 2008; 9.25 percent subordinated notes due 2007; 12 percent exchange debentures due 2009; and 12.75 percent senior discount notes due 2009; and to reduce the amount outstanding under Clear Channel's domestic credit facilities.

Clear Channel Communications, which owns SFX Entertainment, has conducted a major bond transaction, selling $1.5 billion of notes through Credit Suisse First Boston and Salomon Smith Barney to finance the debt redemption of various AMFM notes including AMFM's "9 percent subordinated notes due 2008; 9.25 percent subordinated notes due 2007; 12 percent exchange debentures due 2009; and 12.75 percent senior discount notes due 2009; and to reduce the amount outstanding under Clear Channel's domestic credit facilities.

A company statement indicates that the AMFM notes and bonds "are being redeemed pursuant to change of control redemption provisions in the indentures."

As reported earlier, after an aggressive acquisitions campaign in sports and entertainment, SFX Entertainment established an early lead in marketing “live experiential” events. SFX develops and manages touring Broadway shows, and sells Broadway subscription series and individual productions in 55 markets. An integrated franchise that promotes and produces a broad variety of live entertainment events locally, regionally and nationally, SFX has 122 venues overall, and owns or operates venues in 31 of the top 50 domestic markets.

SFX was acquired by Clear Channel on Aug. 1. Clear Channel has also purchased radio broadcaster AMFM, netting the company a total of 874 radio and 19 television stations in the United States, with equity interests in over 240 radio stations around the world. In its other significant business, Clear Channel operates more than 700,000 outdoor advertising displays,including billboards, street furniture and transit panels.

-- By Murdoch McBride