Clear Channel Extends Tender Offer

SAN ANTONIO (AP) – Clear Channel Communications Inc., which is suing six banks to complete its $19.5 billion private equity buyout, has extended the expiration date of the related tender offers for its senior notes to April 25.

The offer for Clean Channel's outstanding 7.65 percent senior notes due 2010 and a unit's 8 percent senior notes due 2008 was priced last month. The original expiration date for the offers was Friday.

Clear Channel plans to complete the tender offers and consent solicitations upon completion of the takeover. 

As of Wednesday, the company said about 98 percent of the Clear Channel notes and roughly 87 percent of the subsidiary's notes have been validly tendered.

 

Equity buyers, led by Boston-based Bain Capital and Thomas H. Lee LLC, agreed last year to pay $39.20 per share for Clear Channel, but the deal has become increasingly costly for the banks that agreed to finance the takeover. The shares closed Tuesday at $28.25.

 

In its suit, Clear Channel and a holding company established by its private equity buyers accuse Citigroup Inc., Morgan Stanley, Credit Suisse Group, Wachovia Corp., Deutsche Bank and the Royal Bank of Scotland of tortious interference. Clear Channel is seeking $26 billion in damages. 

The buyers have filed a separate suit in New York against the banks alleging breach of contract and fraud.

Citi is serving as lead dealer manager for the tender offers and Deutsche Bank Securities and Morgan Stanley are co-dealer managers.