Clear Channel's full funding for $17.9 bn buyout in escrow acnt
Clear Channel Communications Inc. said on Wednesday that full funding for its $17.9 billion sale to two private equity firms is now in place in an escrow account.
By Agencies |
SAN ANTONIO: Clear Channel Communications Inc. said Wednesday that full funding for its $17.9 billion sale to two private equity firms is now in place in an escrow account.
The radio and outdoor advertising company agreed in November 2006 to be acquired by the buyout firms Bain Capital Partners LLC and Thomas H. Lee Partners LP. Earlier this month, the company decided to take a lower price and slightly higher lending rates to settle a dispute with lenders financing the deal.
Besides the two buyout firms, the parties that contributed equity to the transaction include Highfields Capital Management LP, Abrams Capital Partners LP and Clear Channel's controlling shareholders, the Mays family.
Last week, Clear Channel said the lenders, which include Citigroup Inc., Deutsche Bank AG, Morgan Stanley, Credit Suisse Group, Royal Bank of Scotland Group PLC and Wachovia Corp., placed all financing into escrow.
``All of our financing is liquid and ready to deploy as soon as shareholders approve the amended merger agreement,'' Clear Channel CEO Mark Mays said in a written statement.
The final $36 per-share deal price was 8 percent below the latest offer of $39.20, and even below the original price of $37.60 that major shareholders had opposed as being too low.
The amended offer still requires shareholder approval. The company said Wednesday it still expects the transaction to close by the end of the third quarter.
Clear Channel shares rose 10 cents to $35.03 Wednesday.
The radio and outdoor advertising company agreed in November 2006 to be acquired by the buyout firms Bain Capital Partners LLC and Thomas H. Lee Partners LP. Earlier this month, the company decided to take a lower price and slightly higher lending rates to settle a dispute with lenders financing the deal.
Besides the two buyout firms, the parties that contributed equity to the transaction include Highfields Capital Management LP, Abrams Capital Partners LP and Clear Channel's controlling shareholders, the Mays family.
Last week, Clear Channel said the lenders, which include Citigroup Inc., Deutsche Bank AG, Morgan Stanley, Credit Suisse Group, Royal Bank of Scotland Group PLC and Wachovia Corp., placed all financing into escrow.
``All of our financing is liquid and ready to deploy as soon as shareholders approve the amended merger agreement,'' Clear Channel CEO Mark Mays said in a written statement.
The final $36 per-share deal price was 8 percent below the latest offer of $39.20, and even below the original price of $37.60 that major shareholders had opposed as being too low.
ADVERTISEMENT
The amended offer still requires shareholder approval. The company said Wednesday it still expects the transaction to close by the end of the third quarter.
Clear Channel shares rose 10 cents to $35.03 Wednesday.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
