Author Topic: CCO -- Clear Channel Outdoors  (Read 2074 times)

lincolnc

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CCO -- Clear Channel Outdoors
« on: December 10, 2015, 02:41:13 AM »
Has any one looked at this this?

US No.2 outdoor advertiser behind Lamar (LMAR).  Essentially controlled by iHeartMedia (which is a Bain Capital/Thomas Lee LBO).
Shares have slid massively over the course of this year.  Run by an ex Bain guy.

Interesting overseas business as well.

I've got to believe that cheaper gas mean more driving which means more eyeballs.  Also, if I'm not mistaken, LAMR is now a REIT.  Couldn't they also pursue a similar strategy?

Probably the BIGGEST negative is debt load and upcoming maturities.


rogermunibond

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Re: CCO -- Clear Channel Outdoors
« Reply #1 on: December 10, 2015, 10:26:22 AM »
Biggest issue here is the cross guarantees of IHM debt backed by CCOH (the CCWH Senior Notes).  It's a huge concern if you buy CCO equity.


morningstar

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Re: CCO -- Clear Channel Outdoors
« Reply #3 on: January 05, 2016, 07:25:28 PM »
CCO doesn't guarantee iHeart's debt, but certainly they are tied at the hip. If the parent defaults on the 1bn or so that it owes CCO, CCO is left with almost no cash flow... I think there will definitely be cheaper entry points in that scenario. Meanwhile if iHeart can survive, its own stock or unsecured bonds offer higher leverage to that upside (multi bagged returns).

CCO shareholder litigation against the parent could be an interesting catalyst if it goes off and cuts off CCO as a free liquidity spigot for iHeart.

Broeb22

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Re: CCO -- Clear Channel Outdoors
« Reply #4 on: July 18, 2018, 06:11:41 AM »
Has anyone looked at CCO recently?

It seems like the post-bankruptcy catalyst that will cause float to increase (or the entire company to be sold) is on the way.

Cash flow is poor, which makes meaningful deleveraging seem unlikely, but this situation is very messy and I could be missing a substantial source of cash.