Clear Channel uses note proceeds to redeem 5½%, 4.9% notes

By Toni Weeks

San Luis Obispo, Calif., June 6 – Clear Channel Communications, Inc. said it redeemed its outstanding $567,113,000 of 5½% senior notes due Sept. 15, 2014 and $241 million of 4.9% senior notes due May 15, 2015.

The notes were redeemed at a make-whole price of 101.4316 for the 5½% notes and 104.2256 of the 4.9% notes. Holders also received accrued interest.

According to a press release, the notes were redeemed using the proceeds of a Rule 144A offering of senior notes. The offering proceeds had been deposited into an escrow account for CCU Escrow Corp. on May 1, as previously reported.

The proceeds were then to be released from escrow concurrently with the redemption of the 5½% and 4.9% notes and Clear channel’s assumption of the escrow issuer’s obligations under its $850 million of 10% senior notes.

Clear Channel announced that as part of the satisfaction of the escrow release conditions, the escrow issuer has merged with and into Clear Channel, which entered into a supplemental indenture to effectuate the assumption of the notes, following which the escrowed funds were released and used to redeem the 2014 and 2015 notes.

Clear Channel is a media and entertainment company based in San Antonio.

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