Clear Channel Outdoor Holdings, Inc. announced today the completion of the sale of its Europe-North segment businesses to Bauer Radio Limited, a subsidiary of Bauer Media Group. The purchase price for the transaction was $625 million, subject to customary closing adjustments. This divestiture is a major milestone in the company's strategic transformation.
The net cash proceeds received from the transaction, after fully prepaying the outstanding CCIBV term loans in the principal amount of $375 million plus approximately $12 million of accrued interest, totaled approximately $243 million. This action significantly reduces the company's debt burden and improves its financial structure. Total international divestitures now amount to approximately $745 million in purchase consideration.
Scott Wells, CEO, stated that the company has increased optionality and reduced risk in its business through these international divestitures. The remaining net proceeds are expected to be prioritized for retiring the most advantageous debt in the company's capital structure, further reducing cash interest and increasing Adjusted Funds From Operations (AFFO).
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