Does anyone know when the new numbers come out for short interest?
Don't know if this was posted already or not.
S&P downgrades Clear Channels credit rating! LINK! 9-Jun-09 04:56 pm
By Andrew Edgecliffe-Johnson in New York
Published: June 9 2009 00:44 | Last updated: June 9 2009 00:44
The credit ratings of Clear Channel Communications and CC Media, its private equity-controlled holding company, were cut on Monday by Standard & Poor’s, amid uncertainty about the US radio and outdoor advertising group’s ability to avoid defaulting on its $20bn of debt.
If senior secured lenders refused a proposed debt exchange, “we are concerned that it could violate financial covenants and would be unable to absorb a potential interest rate increase that could accompany an amendment, forcing it into bankruptcy,” the agency warned.
Clear Channel confident of debt solution - Jun-07Clear Channel’s resilience hit by downturn - Jun-05Clear Channel lenders threaten refinancing plan - Jun-03Clear Channel to slash 9% of workforce - Jan-20Limbaugh signs radio contract worth $400m - Jul-03The two-notch downgrade, taking the corporate rating down from B- to CCC, comes as lenders are threatening to reject Clear Channel’s proposed debt exchange, and could attempt to seize control of the company by forcing a default.
However, William Eccleshare, the newly appointed head of the group’s international outdoor advertising division, told the FT that its owners remain confident.
Bain Capital and Thomas H Lee, who took control of the company last year after a tussle with banks in the midst of the credit crunch, could see negative cashflows from their investment this year, S&P warned, citing cyclical and secular pressures on its core businesses.
S&P estimated that balance sheet debt rose to 14 times earnings before interest, tax, depreciation and amortisation (ebitda) for the 12 months to 2009, and said Clear Channel could violate covenants in its loan agreements “in late 2009” if operating trends did not improve.
Clear Channel Outdoor, a quoted subsidiary, announced last week it was seeking to refinance a $2.5bn note due to its parent company in August 2010.
David Hamburger, a Citigroup corporate bond analyst, said on Monday such a refinancing would “meaningfully improve” the company’s position but would only reduce its net leverage to a “still-unsustainable” 16 times ebitda.
Clear Channel separately announced the appointment of John Partilla, a former Young & Rubicam and Time Warner executive to a newly created position overseeing relations with advertisers at both its radio and outdoor divisions.
Maybe Rush will come to Sirius after all!!!!!!!!!!!! for 300 million!