Clear Channel Seeks to Buy Time

Clear Channel Communications Inc., seeking to address more than $10.1 billion of debt due in 2016 before interest rates reverse, is offering to exchange $2.1 billion of notes for debt that matures in 2021.

According to Bloomberg Businessweek, CC will exchange $796.3 million of 10.75 percent notes due 2016 and $1.28 billion of 11 percent so-called toggle payment-in-kind notes due 2016 for the new debt. According to a Clear Channel statement Tuesday, the notes will pay 12 percent in cash and 2 percent through the issuance of payment-in-kind notes, said the company, which set a June 18 offer deadline.

Free cash flow at the San Antonio-based broadcaster hasn’t exceeded $340.9 million in any year since its 2008 buyout by Bain Capital Partners LLC and Thomas H. Lee Partners LP. Credit-default swaps tied to the bonds of the company, which owes (CCMO) about $20.8 billion total, are at about the lowest in two years, a sign investors are open to refinancing, Bloomberg data show.

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