Clear Channel Outdoor Closes $458.5M Sale Of Five Billboard Markets
Gail Chiasson, North American Editor
After jumping 15.3% in the closing minutes of yesterday’s New York Stock Exchange over a report that it was discussing selling nearly $1 billion in billboard assets, Clear Channel Outdoor Holdings has given it back and then some, down 8.3% today (Jan. 7/16).
The company says it has closed a sale of five ‘non-strategic’ outdoor markets to Lamar Advertising for $458.5M in a pair of transactions.
One transaction covers Reno, Nevada; Des Moines, Iowa; and Seattle, Washington. Those markets generated $40.9 million in net revenues (trailing 12 months).
The other transaction covers Cleveland, Ohio, and Memphis, Tennessee. Those markets generated $35.6M in net revenues.
The $458.5M deal price is a blended multiple of 12.5 times the five markets. The company didn’t state a use for proceeds, though it’s expected they could go toward the $20B debt load of parent iHeartMedia.
There was some talk yesterday of CCO planning to sell a different $350M-$400M of billboard assets elsewhere to private buyers such as Total Outdoor and Reagan Outdoor, but there was no news of any such deal in today’s announcement
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