Digital Music News - Done Deal: Clear Channel Buyout Proceeds; Billions Shaved

Done Deal: Clear Channel Buyout Proceeds; Billions Shaved

Tuesday, May 13, 2008
by alexandra

Clear Channel Communications is now being purchased at a reduced $36-per-share, according to announcements issued Tuesday. That is considerably lower than an earlier, per-share valuation of $39.20, though Wall Street - and Clear Channel stakeholders - responded positively to the news.

Regardless of the resolution, the consortium of lending banks is mostly lukewarm on the deal. The reason is that credit markets remain dry, and unfriendly for leveraged buyouts. But instead of a near-$20 billion loan, the realigned deal falls just below $18 billion.

The developments follows the filing of a massive lawsuit by private equity duo Thomas H. Lee Partners and Bain Capital. The banking consortium includes Citigroup Inc., Deutsche Bank AG, Morgan Stanley, Credit Suisse Group, Royal Bank of Scotland Group PLC and Wachovia Corp.

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