Clear Channel Unloads Junk Bonds

Investors balked and Moody’s Investors Service lowered the rating on Clear Channel Outdoor after the company increased its sale of junk bonds from $750 million to $2.5 billion Dec. 18.

But sell it did, in two parts, with proceeds earmarked to refinance bank debt.

The notes sold at par to yield 9.25 percent, according to the Wall Street Journal, citing people close to the deal. “It’s another sign of the strength of the market that a company with an overlevered capital structure has been able to buy another few years of breathing room,” Global Credit Advisers’ Brian Hessel told the paper.

Moody’s downgraded the bonds from B1 to B2, the third-highest junk bond rating. Clear Channel Outdoor is considered to be healthier and less-indebted than its sister company, Clear Channel Communications.