Report: Clear Channel is ''Running Out of Options"
Clear Channel is ''running out of options,'' says the New York Post, after CC's outdoor unit failed to attract interest in a $3 billion debt offering. Clear Channel Outdoor was looking to sell the debt in two packages, with the first one paying 10% and the other paying 14%. But the lack of interest sets the stage for Clear Channel to fall out of loan compliance later this year, the newspaper speculates.
Clear Channel owns an 89% stake in publicly-traded Clear Channel Outdoor and the outdoor business owes Clear Channel about $2.5 billion. The debt offering could have allowed CC Outdoor to repay Clear Channel. Even so, if the outdoor unit raised the money, shareholders would likely protest if funds were used for the parent company. CC currently receives a 6% rate on the money it lent to the outdoor unit.
