Clear Channel Communications sets Thursday investor call for $500 million eight-year notes

By Paul A. Harris

Portland, Ore., Feb. 21 - Clear Channel Communications, Inc. was schedule to hold a mid-morning investor call on Thursday to discuss its new $500 million offering of eight-year priority guarantee notes (expected ratings Caa1/CCC+), according to an informed source.

Final terms are expected before the end of the Thursday session.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the co-managers.

The Rule 144A and Regulation S with registration rights notes come with three years of call protection and feature a three-year 40% equity clawback and a 101% poison put.

The San Antonio-based media and entertainment company plans to use the proceeds, along with a draw on its ABL facility, to repay its existing term loan A due 2014 in its entirety.

The present offering is comprised of new notes in a stand-alone issue.

However the new notes come with the same security and a covenant package that is substantially identical with the Clear Channel Communications 9% priority guarantee notes due March 1, 2021. Those 9% notes priced in a $1 billion issue in February 2011.

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