SAN ANTONIO, March 25, 2020 /PRNewswire/ -- Clear Channel
Outdoor Holdings, Inc. (NYSE: CCO) (the "Company"), one of the
world's largest outdoor advertising companies, today announced it
has drawn down $150 million available
under its Revolving Credit Facility to increase liquidity and
preserve financial flexibility.
"The Americas segment continued to deliver strong growth into
the first quarter of 2020; however we have begun to see weakness in
certain European markets affected by COVID-19. In light of the
uncertainty presented by the unprecedented pandemic, we expect that
future results will be difficult to forecast," said William Eccleshare, Worldwide Chief Executive
Officer of Clear Channel Holdings, Inc. "Given our work to
transform our business over the last year as well as our
significant liquidity and available levers, we believe we are
well-positioned to manage through the economic downturn. In
addition, we opted to make a cautionary draw down of $150
million of availability under our revolving credit facility to
further preserve financial flexibility."
Mr. Eccleshare added, "As always, the health and safety of our
employees remain our top priority. We are closely monitoring the
spread of COVID-19 and its impact on our global business, and we
have taken and will continue to take appropriate steps to ensure
the continuity of our platform and operations to serve our clients,
as local conditions permit."
As of December 31, 2019, the
Company had approximately $399
million of cash on its balance sheet (including $38 million from Clear Media Limited, an
indirect, non-wholly owned subsidiary based in China). Together with the $150 million in proceeds received from the draw
down on the revolving credit facility, Clear Channel's pro forma
cash position on its balance sheet would have been approximately
$549 million. As of December 31, 2019, the first lien leverage ratio
was approximately 4.75x 1, which is well below the
maximum 7.60x under the terms of the Company's Senior Secured
Credit Facilities. The draw down under the revolver does not impact
this ratio, which is calculated on a net basis.
The Company will provide an update during its first quarter of
2020 earnings conference call.
(1) The Company's first lien leverage ratio presented in this
press release is calculated by dividing the Company's first lien
debt as of December 31, 2019, by the
Company's historical EBITDA (as defined by the New Senior Secured
Credit Agreement) for the four quarters ended December 31, 2019. The following table presents
the Company's first lien debt as of December
31, 2019:
(In
millions)
|
Four Quarters
Ended
December 31,
2019
|
Term Loan
Facility
|
$
|
1,995.0
|
Clear Channel Outdoor
Holdings 5.125% Senior Notes Due 2027
|
|
1,250.0
|
Other debt
|
|
4.2
|
Less: Cash and cash
equivalents
|
|
(398.9)
|
Total first lien
debt
|
$
|
2,850.3
|
|
|
|
|
The following table reflects a reconciliation of EBITDA (as
defined by the New Senior Secured Credit Agreement) to operating
income and net cash provided by operating activities for the four
quarters ended December 31, 2019:
|
Four Quarters
Ended
|
(In
millions)
|
December 31,
2019
|
EBITDA (as defined by the New Senior
Secured Credit Agreement)
|
$
|
599.8
|
|
Less adjustments to
EBITDA (as defined by the New Senior Secured Credit
Agreement):
|
|
Charges, expenses or
reserves in respect of any restructuring, relocation, redundancy or
severance
expense or one-time compensation charges
|
(13.0)
|
|
Other
items
|
2.5
|
|
Less: Depreciation
and amortization, Impairment charges, Share-based compensation and
Interest income
|
(336.4)
|
|
Operating
income
|
252.9
|
|
Plus: Depreciation
and amortization, Impairment charges, Loss (gain) on disposal of
operating and other assets,
net and Share-based compensation
|
328.5
|
|
Less: Interest
expense, net
|
(418.2)
|
|
Less: Interest
expense on Due from iHeartCommunications, net
|
(1.3)
|
|
Less: Current income
tax expense
|
(48.2)
|
|
Less: Other expense,
net
|
(15.4)
|
|
Adjustments to
reconcile consolidated net loss to net cash provided by operating
activities (including Provision
for doubtful accounts, Amortization of deferred financing
charges and note discounts, net, Foreign exchange
transaction loss and Other reconciling items,
net)
|
13.6
|
|
Change in operating
assets and liabilities, net
|
102.6
|
|
Net cash provided
by operating activities
|
$
|
214.5
|
|
About Clear Channel Outdoor Holdings, Inc.
Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO) is one of the world's
largest outdoor advertising companies with a diverse portfolio of
approximately 460,000 print and digital displays in 32 countries
across Asia, Europe, Latin
America and North America,
reaching millions of people monthly. A growing digital platform
includes more than 15,000 digital displays in international markets
and more than 1,700 digital displays (excluding airports),
including more than 1,400 digital billboards, in the U.S.
Comprised of two business divisions – Clear Channel Outdoor
Americas (CCOA), the U.S. and Caribbean business division, and Clear Channel
International (CCI), covering markets in Asia, Europe
and Latin America – CCO employs
approximately 5,900 people globally. More information is available
at investor.clearchannel.com, clearchannelinternational.com and
clearchanneloutdoor.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this press release
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Clear Channel Outdoor Holdings, Inc.
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The words or phrases "guidance," "believe," "expect,"
"anticipate," "estimates," "forecast" and similar words or
expressions are intended to identify such forward-looking
statements. In addition, any statements that refer to expectations
or other characterizations of future events or circumstances, such
as statements about our future operating results and liquidity and
the impact of the COVID-19 pandemic on our business, are
forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, some of which are beyond our
control and are difficult to predict.
Various risks that could cause future results to differ from
those expressed by the forward-looking statements included in this
press release include, but are not limited to: weak or uncertain
global economic conditions and their impact on the level of
expenditures on advertising, including the effects of Brexit and
economic uncertainty in China; our
ability to service our debt obligations and to fund our operations
and capital expenditures; industry conditions, including
competition; our ability to obtain key municipal concessions for
our street furniture and transit products; fluctuations in
operating costs; technological changes and innovations; shifts in
population and other demographics; other general economic and
political conditions in the United
States and in other countries in which we currently do
business, including those resulting from recessions, political
events and acts or threats of terrorism or military conflicts;
changes in labor conditions and management; the impact of future
dispositions, acquisitions and other strategic transactions;
legislative or regulatory requirements; regulations and consumer
concerns regarding privacy and data protection; a breach of our
information security measures; restrictions on outdoor advertising
of certain products; fluctuations in exchange rates and currency
values; risks of doing business in foreign countries; the magnitude
of the impact of the COVID-19 pandemic on our operations and on
general economic conditions; third-party claims of intellectual
property infringement, misappropriation or other violation against
us; the risk that the Separation could result in significant tax
liability or other unfavorable tax consequences to us and impair
our ability to utilize our federal income tax net operating loss
carryforwards in future years; the risk that we may be more
susceptible to adverse events following the Separation; the risk
that we may be unable to replace the services iHeartCommunications
provided us in a timely manner or on comparable terms; our
dependence on our management team and other key individuals; the
risk that indemnities from iHeartMedia will not be sufficient to
insure us against the full amount of certain liabilities;
volatility of our stock price; the impact of our substantial
indebtedness, including the effect of our leverage on our financial
position and earnings; the ability of our subsidiaries to dividend
or distribute funds to us in order for us to repay our debts; the
restrictions contained in the agreements governing our indebtedness
and our Preferred Stock limiting our flexibility in operating our
business; the effect of analyst or credit ratings downgrades; and
certain other factors set forth in our other filings with the SEC.
This list of factors that may affect future performance and the
accuracy of forward-looking statements is illustrative and is not
intended to be exhaustive.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated,
or if no date is stated, as of the date of this press release.
Other key risks are described in the section entitled "Item 1A.
Risk Factors" of the Company's reports filed with the U.S.
Securities and Exchange Commission, including the Company's Annual
Report on Form 10-K for the year ended December 31, 2019.
Except as otherwise stated in this press release, the Company does
not undertake any obligation to publicly update or revise any
forward-looking statements because of new information, future
events or otherwise.
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SOURCE Clear Channel Outdoor Holdings, Inc.