Clear Channel Outdoor Holdings, Inc. to Sell its Europe-North Segment to a subsidiary of Bauer Media Group for $625 Million

Transaction Overview - Clear Channel Outdoor Holdings Inc has entered into a definitive agreement to sell its Europe-North segment to Bauer Radio Limited for an expected purchase price of $625 million [1] - The all-cash consideration represents a transaction multiple of approximately 6.5x Europe-North segment results for the twelve months ended September 30, 2024 [2] - The transaction is expected to close in 2025, subject to regulatory approvals [3] Use of Proceeds - The company plans to use the anticipated net proceeds from the sale to prepay in full the outstanding CCIBV term loans in the principal amount of$375 million, plus any accrued interest [2] - The remaining expected net proceeds will be subject to the asset sale provisions of the agreements governing the remainder of the company's indebtedness [2] Strategic Rationale - The sale of the Europe-North segment is part of the company's strategic plan to optimize its portfolio and focus on growing its America and Airports segments to improve cash flow and reduce leverage [3] - Upon completion of this transaction, the company will have divested the substantial majority of its European operations [3] Accounting Treatment - The company's plan to sell the Europe-North segment met the criteria to be reported as discontinued operations during the fourth quarter of 2024 [4] - Starting with the release of the company's fourth quarter 2024 results, assets and liabilities of these discontinued operations will be presented separately in the company's Consolidated Balance Sheets [4] - Results of discontinued operations will be reported as a separate component of consolidated net loss in the company's Consolidated Statements of Loss [4] Financial Advisors - The company engaged Moelis & Company LLC and Deutsche Bank Securities Inc as financial advisors to assist with the process to sell the Europe-North segment [6] Company Overview - Clear Channel Outdoor Holdings Inc is at the forefront of driving innovation in the out-of-home advertising industry [7] - The company's dynamic advertising platform is broadening the pool of advertisers through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities [7][8] - The company leverages the scale, reach and flexibility of its diverse portfolio of assets to connect advertisers with millions of consumers every month [8]