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Clear Channel Creditors Counting On Default

New York Post, Monday, April 12, 2010 11:34 PM

Clear Channel, the nation's largest radio station owner -- hasn't successfully renegotiated its debt with some lenders. Bain and THL bought Clear Channel in a $24 billion leveraged buyout in 2008. It may take about four years, but if the company can't manage to change its capital structure, it will ultimately default on its $18.4 billion debt, sources said.

Clear Channel large creditors -- Centerbridge Partners and OakTree Capital Management -- are not passive LBO lenders. Centerbridge co-founder Mark Gallogly is formerly a Blackstone Group managing director, and OakTree last week repossessed radio company Regent Communications. Both want to own Clear Channel and are prepared to wait. Clear Channel generates $1.4 billion in cash flow while paying $1 billion in interest and spending $200 million on capital expenditures, a lender said.

Read the whole story at New York Post »

financing, radio

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