Clear Channel parties agree budget deal

Source: Exec Digital USA

Date :5/14/2008 5:29:09 AM

The debate over financing the leveraged buyout of U.S. radio operator Clear Channel Communications Inc. has finally ended after an agreement was reached to settle the litigation and a new deal was struck at a lower price of $17.9 billion.

The news brings to an end court battles between the private equity buyers, Clear Channel, and the banks which agreed to finance the deal when lending was more rewarding.

The new deal will see Thomas H. Lee Partners and Bain Capital pay $36 a share to buy the radio operator, as opposed to the $39.20 agreed at the peak of the private equity boom last year.

Equitable deal

“It's a great company and the economics of the business are great,” Clear Channel Chief Executive Mark Mays told Reuters in an interview. “While you don't like to sue the people that lend you money, sometimes is it necessary. This was an equitable deal for everyone.”

The new deal is expected to go to shareholder vote in August or September and close in the third quarter.

May 14, 2008