Lamar Advertising Company Announces Redemption of 7 7/8% Senior Subordinated Notes Due 2018
March 21 2014 - 4:00PM
Lamar Advertising Company (Nasdaq:LAMR), a leading owner and
operator of outdoor advertising and logo sign displays, today
announced that its wholly owned subsidiary, Lamar Media Corp.
("Lamar Media"), intends to redeem in full all $400,000,000 in
aggregate principal amount of its 7 7/8% Senior Subordinated Notes
due 2018 (CUSIP No. 513075AY7) (the "Notes"). The redemption
will be made in accordance with the terms of the indenture
governing the Notes and the terms of the notice of redemption.
Lamar Media expects the Notes to be redeemed on April 21, 2014
(the "Redemption Date") at a redemption price equal to 103.938% of
the aggregate principal amount of outstanding Notes, plus accrued
and unpaid interest to (but not including) the Redemption Date (the
"Redemption Price"). The Redemption Price will be due and
payable on the Redemption Date upon surrender of the
Notes. Lamar intends to fund the redemption through a
combination of (i) approximately $300 million in borrowings
from the establishment of a new incremental term loan facility
under Lamar Media's senior credit facility (the "Term Loan"),
(ii) borrowings under the revolving portion of its senior
credit facility and (iii) cash on hand. Lamar Media
expects to amend its senior credit agreement to establish the Term
Loan on or before the Redemption Date. Lamar Media's lenders
have no obligation to make additional incremental loans (including
the Term Loan) under the incremental facility, but may enter into
such commitments in their sole discretion.
A notice of redemption is being mailed to all registered holders
of the Notes by The Bank of New York Mellon Trust Company N.A., the
trustee for the Notes. Copies of the notice of redemption may
be obtained from The Bank of New York Mellon by calling
1-800-254-2826.
This announcement is for informational purposes only and is not
an offer to purchase or sell or a solicitation of an offer to
purchase or sell, with respect to the Notes or any other
securities.
Forward-looking Statements
This press release contains certain forward‑looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding Lamar Media's ability to
fund redemption of the Notes and establish a new incremental term
loan facility under its senior credit agreement. These
statements are based on management's current expectations or
beliefs, and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those
expressed or implied by the statements included herein due to
changes in economic, business, competitive, technological,
strategic and/or regulatory factors and other factors affecting the
operation of the businesses of Lamar Media. More detailed
information about these factors may be found in the filings made by
Lamar Advertising Company and Lamar Media with the Securities and
Exchange Commission, including in the Risk Factors section of their
combined Annual Report on Form 10-K for the year ended December 31,
2013. Lamar is under no obligation, and expressly disclaims
any such obligation, to update or alter its forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
General Information
Lamar Advertising Company is a leading outdoor advertising
company currently operating over 150 outdoor advertising companies
in 44 states, Canada and Puerto Rico, logo businesses in 22 states
and the province of Ontario, Canada and over 60 transit advertising
franchises in the United States, Canada and Puerto Rico.
CONTACT: Keith A. Istre
Chief Financial Officer
(225) 926-1000
KI@lamar.com
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