Clear Channel Outdoor Holdings, Inc. to Sell its Switzerland Business to Goldbach Group, an Affiliate of TX Group, for CHF 86 Million

The company continues to review strategic options for its European businesses

San Antonio, December 22, 2022 /PRNewswire/ — Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) today announced that it has entered into a definitive agreement to sell its business. Switzerland For Goldbach Group AG, an affiliate of TX Group AG CHF 86.0 millionOr US$92.7 million1,

The Swiss business of the company is expected to contribute approx. US$ 9.7 millionthat excludes US$1.4 million One-time items including rent deductions for Europe segment Adjusted EBITDA2 ended for the whole year December 31, 2022, The all cash consideration represents a transaction multiple of approximately 9.5x segment adjusted EBITDA contribution. The Company expects to hedge the anticipated proceeds to reduce risks related to foreign exchange fluctuations, and anticipated taxes in connection with the transaction are expected to be lower than anticipated. US$ 5 million, The Company intends to use the anticipated net proceeds from the sale to improve its liquidity position and enhance financial flexibility, subject to any limits set forth in its debt agreements.

“Sales of our business in Switzerland This is the result of our ongoing review of strategic options for our European businesses and moves us toward our goal of optimizing our portfolio in the best interests of our shareholders.” Scott WellsClear Channel Outdoor Holdings, Inc. Chief Executive Officer of “This transaction allows us to exit a standalone and low-priority market at a valuation that we believe reflects the quality of our Swiss assets, which are performing well.

“Our review of strategic options for our European businesses is ongoing, and we will continue to seek dispositions of some of our low-margin or low-priority European assets,” Wells continued. “We remain focused on our US business and executing on our strategic priorities, which we believe will drive revenue growth and operating cash flow as well as improve our balance sheet over time.”

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The transaction is subject to regulatory approval, receipt of a customary tax ruling in connection with the restructuring and other customary closing conditions relating to the transaction and is expected to close in the second or third quarter of 2023, depending on when the termination conditions are satisfied.

There can be no assurance that the strategic review of our European businesses will result in any additional transactions or special results. We have not set a timetable for completing these procedures and may postpone these procedures at any time.

consultants

Moelis & Company LLC and Deutsche Bank Securities Inc. Clear Channel Outdoor Holdings, Inc. is acting as financial advisor, and Kirkland & Ellis LLP and Homburger AG are acting as legal advisors.

About Clear Channel Outdoor Holdings

Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are easy to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers to millions of consumers every month across more than 500,000 print and digital displays in 24 countries.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “estimate,” “estimate,” “forecast,” “target,” “potential,” “target” and similar words and expressions are intended to identify such forward-looking statements. any statements that refer to expectations or other characteristics of future events or circumstances, such as statements regarding the satisfaction of conditions of closing for the sale of our Swiss business; the use of proceeds therefrom and the potential hedging thereof; an ongoing review of strategic options for our European businesses; our expectations for optimizing our portfolio; our expectations with respect to our US business; our business plans and strategies; and our liquidity are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.

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Various risks that could cause future results to differ materially from those expressed by the forward-looking statements included in this press release include, but are not limited to: failure in; our inability to hedge the potential net proceeds from the sale of our Swiss business; the impact of the ongoing strategic review of our European businesses and assets; our inability to complete any other transactions with respect to our European businesses and to improve our portfolio; Weak or uncertain global economic conditions and their impact on our strategic review processes and/or the level of advertising spending; Elevated levels of economic inflation and rising interest rates; Fluctuations in operating costs; supply chain constraints; our ability to achieve expected financial results and growth goals; geopolitical events, such as wars ukraine and the global implications thereof; the continuing impact of the COVID-19 pandemic on our operations and general economic conditions; our ability to meet our debt obligations and fund our operations and capital expenditures; the effect of our substantial indebtedness; industry status; changes in labor conditions and management; Breach of our information security systems and measures; legislative or regulatory requirements; our ability to execute restructuring plans; the impact of future disposals, acquisitions and other strategic transactions; third party claims of infringement, misappropriation or other infringement of intellectual property against us or our suppliers; the risks of doing business overseas; fluctuations in exchange rates and currency values; volatility of our stock price; our ability to continue to comply with applicable New York Stock Exchange listing standards; restrictions contained in agreements governing our indebtedness that limit our flexibility in operating our business; and certain other factors set forth in our other filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, or if no date is set forth, as of the date of this press release. Other key risks are described in the section entitled “Item 1A. Risk Factors” of the Company’s reports filed with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 30, 2015. December 31, 2021, The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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1 Figures based on prevailing exchange rates December 21, 2022,
2 Segment adjusted EBITDA is a GAAP financial measure calculated by netting revenue less direct operating expenses and SG&A expense, restructuring and other costs. Restructuring and other costs include costs associated with cost savings initiatives such as severance, consulting and termination costs and other special costs.

SOURCE Clear Channel Outdoor Holdings, Inc.

Source

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