Clear Channel Tender Delayed Again

As a follow up to my Seeking Alpha commentary from last week, Clear Channel Moves Closer to Buyout, radio industry journal Radio Business Report has this latest update on the Clear Channel buyout by two private equity firms:

It's looking like Friday of this week (3/28) is the earliest that the 26.7 billion bucks buyout of Clear Channel Communications might go to closing. The company has moved the expiration date for its bond tender again, this time to Thursday, March 27. The bond tender is having no trouble drawing takers. Clear Channel reported that, as of March 20th, approximately 98% of the outstanding Clear Channel 7.65% Senior Notes due 2010 had been tendered and approximately 87% of the AMFM Operating Inc. 8% senior Notes due 2008. Citi is acting as lead dealer manager for the tenders and Deutsche Bank Securities and Morgan Stanley as co-dealer managers.

RBR observation: This going private transaction is so close to the finish line, despite the collapse of the US credit markets since it was launched 16 months ago, but will Thomas H. Lee Partners and Bain Capital be able to nudge it to completion? As previously noted (3/21/08 RBR #57), T. H. Lee's Scott Sperling said last week that the buyout firms have binding commitments from their lenders, but he still wasn't willing to state firmly on CNBC whether or not the deal will get to closing, taking the "no comment" route and saying that Clear Channel management would make any public comments to be made about the transaction. The only thing we can say for sure is that if the deal doesn't close, there will be lawyers racing to the courthouse to sue someone.

As of mid-day Tuesday, March 25th, the stock is sitting at $33.95, still a large spread from the proposed takeout price of $39.20. Perhaps the market has now heard this “any day now" scenario too many times, but it does feel imminent.

Disclosure: None

Disclaimer: This article reflects the individual views of Mr. Hannan and may not be attributed to any person, company or other entity with whom Mr. Hannan is affiliated.

Comments

[J.P. Hannan]

What a difference a day makes.... the Wall Street Journal reports after the market closed today that the CCU deal is "close to collapse" as the private equity groups and lenders can not come to terms on the credit agreements.

I have a feeling that should this ultimately close someone will be making a movie of this one day to rival the RJR buyout saga.

online.wsj.com/article...

[J.P. Hannan]

And the saga continues....

www.radioink.com/Headl...

[J.P. Hannan]

Today's latest-

www.marketwatch.com/ne...