Clear Channel Offers $2.725B in HY

Clear Channel is planning to sell $2.725 billion in a two-part bond offering. The move is part of a larger debt refinancing effort. The company is issuing the bonds through its Clear Channel Outdoor Holdings unit.

The company plans to issue $1.989 billion in series B senior notes due 2022 and $735.8 million in series A senior notes due 2022.

Goldman Sachs is the lead bookrunner and the bonds are expected to price Nov. 5.

The company will use the proceeds to help finance a tender offer for its outstanding $500 million in existing 9.25% Series A Senior Notes due 2017 and its $2 billion in outstanding existing 9.25% Series B Senior Notes due 2017.

Clear Channel Outdoor Holdings sold $2.2 billion in a two-part deal this past March. As of Sept. 30, it had $4.7 billion in long-term debt, according to a regulatory filing. It reported revenues of $731 million in the third quarter of 2012, a decrease from the $748 million in the same period of 2011.

Sister company Clear Channel Communications recently won lender approval to exchange new debt for up to $5 billion of loans. Clear Channel also has the ability to use up to $200 million of cash on hand to repay junior debt maturing before January 2016, but only after the term loan As are repaid.