Clear Channel launches Dutch auction tender for five series of notes

By Susanna Moon

Chicago, Nov. 24 - Clear Channel Communications, Inc. said it began a cash tender offer to purchase up to $200 million of its outstanding 7.65% senior notes due 2010.

Clear Channel also said its indirect wholly owned subsidiary, CC Finco, LLC, began a cash tender offer for up to $75 million of Clear Channel's outstanding 6¼% senior notes due 2011 and 4.4% senior notes due 2011.

The company also began a cash tender offer for up to $25 million of Clear Channel's 5% senior notes due 2012 and its 5¾% senior notes due 2013.

The tender offers will expire at 8 a.m. ET on Dec. 23.

For each $1,000 principal amount of the 7.65% notes, total payout will be set on a base price of $500 plus a clearing premium not to exceed $150.

The clearing premium will be the lowest single premium at which Clear Channel will be able to purchase the notes' maximum acceptance amount by accepting tendered notes with bid premiums equal to or lower than the clearing premium.

For each $1,000 principal amount of the 6¼% and 4.4% notes, total payout will be set on a base price of $270 for the 6¼% notes and $200 for the 4.4% notes plus a clearing premium not to exceed $50 in each case.

For each $1,000 principal amount of the 5% and 5¾% notes, total payout will be set on a base price of $150 for the 5% notes and $125 for the 5¾% notes plus a clearing premium not to exceed $50 in each case.

Investors will receive accrued interest to the purchase date.

Holders who tender their notes by 5 p.m. ET on Dec. 8 will receive an early participation payment of $10.00 per note.

Citi (800 558-3745 or collect 212-723-6106) is the dealer manager. Global Bondholder Services Corp. (866 873-7700 or 212-430-3774 for banks and brokers) is information agent and depositary.

Clear Channel is a San Antonio-based radio and outdoor display advertising company.

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