Wednesday, May 22, 2013


The national boycott of Fats Limbaugh has really hurt it's cash flow and now it has to pay high interest rates to delay what may be inevitable - bankruptcy.

From Tom Taylor's NOW of 5/22/2013:
Clear Channel pushes back more debt maturities into the future.
Last week Clear Channel offered to extend $1.5 billion of its Term Loan B and C debt due in January 2016 to July 2018 – and it’s willing to shoulder that additional cost in the form of a higher interest rate. Yesterday it took action on another front – a private offer to qualified institutional investors under the SEC’s Rule 144A to exchange a couple of issues of debt due in 2016 for notes due in 2021. Those are the 10.75% Senior Cash Pay note and the 11%/11.75% Senior Toggle Notes. The exchange offer is valid through June 18 – and check the rate on the new notes. It will be 12% per year in cash, plus an additional 2% a year through the issuance of PIK (Payment in Kind) notes. That’s expensive money.

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