Clear Channel Outdoor comments on recent capital market activities
Clear Channel Outdoor commented on the realized benefits resulting from recent capital market activities. "The Company's successful capital markets activities over the last several weeks have led to an improved balance sheet, stronger cash flow generation and a significantly extended maturity profile," said William Eccleshare, worldwide CEO of the company. "We have reduced our net leverage and cash interest payments as a result of these transactions. The Company's improving balance sheet provides important strategic flexibility as we look to both continue de-levering over time and invest in attractive, high-return growth opportunities. We believe our global footprint and strategic investments in digitalization, automation and data analytics, together with a stronger balance sheet, provide us with a solid foundation for the future within our strong industry." "Our equity raise has resulted in credit upgrades that have enabled us to efficiently refinance all of our senior debt on a secured basis at a lower cost and with extended maturities," said Brian Coleman, CFO of the company. "Our pro forma net leverage ratio will be reduced to 7.9x.(1) Cash interest payments are expected to decrease $63.0 million per year due to the refinancing activities, and our next nearest material debt maturity will be in 2024. In addition, the recent transactions will enable the Company to be free cash flow positive on a pro-forma basis, and to be on a path to de-lever organically over time, without the need for further equity capital."