Clear Channel Burning Cash to Delay Reckoning: Corporate Finance
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Clear Channel Communications Inc. is offering to double interest to push out maturities on some of the $4.3 billion it owes, just as the most-leveraged U.S. broadcaster suffers the first cash-flow deficit in four years.
The company said on Nov. 25 that it’s seeking to extend about $1.8 billion of borrowings due in 2016 by three years to five years, which Fitch Ratings estimates would boost interest costs as much as $55 million annually.