CCO Sells Five Markets To Lamar

Clear Channel Outdoor Holdings, Inc., a subsidiary of iHeartMedia, Inc., today announced the closing of two transactions involving the sale by its Clear Channel Outdoor Americas segment (CCOA) of non-strategic outdoor markets for $458.5 million, in the aggregate, to Lamar Advertising Company.

The first transaction is the sale of Reno, NV; Seattle/Tacoma, WA; and Des Moines, IA. On a trailing 12-month basis ended September 30, 2015, these markets generated $40.9 million in net revenues.

The second transaction includes Cleveland, OH and Memphis, TN, which generated $35.6 million in net revenues.

The aggregate purchase price of $458.5 million represents a blended multiple of 12.5x of the five markets’. With these transactions, Clear Channel Outdoor Americas (CCOA) now has operations in 44 of the top 50 U.S. markets.

“Lamar made a very attractive offer that makes sense for CCOA, given our focus on core markets where we have a strong presence and scale,” said Scott Wells, CEO of CCOA. “These transactions give us more focused operations and free up resources to continue to drive innovation in the out-of-home space, and are a win for both companies.”

The Company is considering the optimal uses of the proceeds of the sales.

It's generally beliveed Clear Channel Outdoor would sell the assets to pay off some of the $20.6 billion in debt held by its parent company, iHeartMedia, which was taken private in 2008 by buyout firms Bain Capital LLC and Thomas H. Lee Partners for $19 billion.