Business
Lamar Advertising Company Announces Completion of Refinancing Transactions & 2020 Distribution Plan
BATON ROUGE, La., Feb. 06, 2020 (GLOBE NEWSWIRE) -- Lamar Advertising Company (“Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising
About this update from Lamar Advertising Company
[{"type":"text","content":"BATON ROUGE, La., Feb. 06, 2020 (GLOBE NEWSWIRE) -- Lamar Advertising Company (“Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, today announced that it has completed $2.35 billion in refinancing transactions through its wholly owned subsidiary, Lamar Media Corp. (“Lamar Media”), strengthening its balance sheet.\n Taken together, the transactions will lower Lamar Media’s cost of debt, extend its debt maturities, improve its liquidity and free cash flow and lower its exposure to floating interest rates. “These transactions are a testament to the faith that the capital markets have in the outlook for Lamar and the out-of-home sector, and they provide valuable flexibility that positions us well for continued growth,” said Lamar executive vice president and chief financial officer Jay Johnson. The refinancing transactions include the sale, through an institutional private placement, of $1.0 billion in aggregate principal amount of new senior notes (the “Notes”) consisting of $600.0 million in aggregate principal amount of 3 3/4% Senior Notes due 2028 and $400.0 million in aggregate principal amount of 4% Senior Notes due 2030, which closed today. In addition, Lamar Media closed today on an amended and restated credit facility, consisting of a 5-year, $750.0 million revolving credit facility (to replace its existing $550.0 million revolving credit facility) and a new 7-year, $600.0 million Term Loan B. The initial pricing on the revolving credit facility and Term Loan B is 150 basis points over Libor with a 0% floor on the benchmark. Proceeds from the refinancing transactions will be used to repay Lamar Media’s existing Term Loan A and Term Loan B, redeem in full all $510.0 million in aggregate principal amount of its outstanding 5 3/8% Senior Notes due 2024 on February 20, 2020 (the “Redemption”), partially repay borrowings under the existing revolving credit facility, pay fees and expenses connected therewith and the remainder, if any, for general corporate purposes. Collectively, the transactions are expected to increase Lamar’s cash flow by more than $60.0 million in 2020 as a result of lower cash interest payments and the elimination of amortization payments on Lamar Media’s existing Term Loan A and Term Loan B. Following completion of the transactions (including the Redemption)...