Clear Channel said yesterday it plans to offer $750 million in notes to "qualified institutional buyers." Of the anticipated proceeds from the notes, CCU intends to use $250 million to repay at maturity a portion of CCU?s 5% legacy notes which mature in March 2012. The remaining $500 million will be used for general corporate purposes (to replenish cash on hand that CCU previously used to pay legacy notes at maturity on March 15, 2011 and May 15, 2011).
The $500 million of proceeds available for general corporate purposes may be used to repay indebtedness, including repaying indebtedness outstanding under CCU?s revolving credit facilities. In addition, such proceeds may be used in connection with one or more future transactions involving a permanent repayment of a portion of CCU?s senior secured credit facilities as part of CCU?s long-term efforts to optimize its capital structure. CCU intends to use cash on hand to pay fees and expenses in connection with the offering.
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