Clear Channel incurred a net of around $20 billion in debt to “take Clear Channel private” and the debt load owed to banks continues to devour its soul<\/p>\n
CC has to pony up $1.5 billion a year in interest on its roughly $20 billion in debt, roughly 7% – but CC is now proposing to exchange debt coming due in the next few years with longer maturity but much higher interest rates.<\/p>\n
http:\/\/bloomberg.com\/news\/2013-11-29\/clear-channel-burning-cash-to-delay-reckoning-corporate-finance.html<\/p>\n
Typically, PE firms want to acquire a company and “fix it” (firing people, selling assets, selling off non-core lines of business) then turn around and make the company public, sometimes with an intermediate step of declaring bankruptcy to screw the existing bond owners. It doesn’t look like that’s the plan here, but it is hard to predict the future.<\/p>\n","protected":false},"excerpt":{"rendered":"
Clear Channel incurred a net of around $20 billion in debt to “take Clear Channel private” and the debt load owed to banks continues to devour its soul CC has to pony up $1.5 billion a year in interest on … Continue reading