According to Bloomberg Businessweek, CC will exchange $796.3 million of 10.75 percent notes due 2016 and $1.28 billion of 11 percent so-called toggle payment-in-kind notes due 2016 for the new debt. According to a Clear Channel statement Tuesday, the notes will pay 12 percent in cash and 2 percent through the issuance of payment-in-kind notes, said the company, which set a June 18 offer deadline.
Free cash flow at the San Antonio-based broadcaster hasn’t exceeded $340.9 million in any year since its 2008 buyout by Bain Capital Partners LLC and Thomas H. Lee Partners LP. Credit-default swaps tied to the bonds of the company, which owes (CCMO) about $20.8 billion total, are at about the lowest in two years, a sign investors are open to refinancing, Bloomberg data show.