Moody’s gives Clear Channel notes B2

Moody’s said it assigned a B2 rating to the proposed $350 million of senior secured notes due 2025 to be issued by Clear Channel International BV.

Proceeds will be used to repay a $54.9 million promissory note and add cash to the balance sheet.

The new notes will be secured by some international assets, but will not have a claim against the high margin North American assets or be guaranteed by Clear Channel Outdoor Holdings, Inc.

The transaction increases Clear Channel Outdoor’s pro forma cash balance to about $885 million, but pro forma leverage will increase to 10.9x from 10.2x as of the first quarter of 2020, excluding Moody’s standard lease adjustments, the agency said.

Moody’s affirmed Clear Channel Outdoors’ B3 rating and the B1 rating on the company’s senior secured credit facility and senior secured notes. Also, Moody’s affirmed Clear Channel Worldwide Holdings, Inc.’s senior unsecured notes at Caa2.

The outlook is negative.

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