iHeartMedia 2001 Annual Report Download - page 53

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53
SFX Long-Term Bonds
We assumed long-term bonds with a face value of $550.0 million in the SFX merger. On October
10, 2000, we launched a tender offer for any and all of the 9.125% Senior Subordinated Notes due 2008.
An agent acting on our behalf redeemed notes with a redemption value of approximately $602.9 million.
Cash settlement of the amount due to the agent was completed during November 2000. After
redemption, approximately $1.6 million face value of the notes remains outstanding. The tender offer
was financed with borrowings under our credit facilities.
Liquid Yield Option Notes
We assumed 4.75% Liquid Yield Option Notes (“LYONs”) due 2018 and 5.50% LYONs due
2011 as a part of the merger with Jacor. Each LYON has a principal amount at maturity of $1,000 and is
convertible, at the option of the holder, at any time on or prior to maturity, into our common stock at a
conversion rate of 7.227 shares per LYON and 15.522 shares per LYON for the 2018 and 2011 issues,
respectively. On May 7, 2001, we delivered notice of our intent to redeem the total outstanding
principal amount of the 5.50% LYONs on June 12, 2001. Pursuant to the indenture agreement, the
redemption price of $581.25 per each $1,000 LYON outstanding at June 12, 2001 was equal to the issue
price plus accrued original issue discount through the redemption date. Substantially all of the 5.50%
LYONs converted into our common stock prior to the redemption date. The 4.75% LYONs balance,
after conversions to common stock, amortization of purchase accounting premium, and accretion of
interest, at December 31, 2001 was $244.4 million, which includes unamortized fair value purchase
accounting premium of $43.9 million.
Guarantee of Third Party Obligations
As of December 31, 2001 and 2000, we guaranteed third party dept of approximately $225.2
million and $280.0 million, respectively, primarily related to long-term operating contracts. A
substantial portion of these obligations is secured by the third party’s associated operating assets.
Restricted Cash
In connection with the 2000 AMFM merger and related governmental directives, we received
proceeds related to the divestitures of radio stations. These proceeds were placed in a restricted trust for
the purchase of replacement properties. At December 31, 2000, $628.1 million remained in the trust.
During 2001, related to the divestiture of five radio stations and the exchange of a television license, we
received $51.0 million in proceeds that were placed in restricted trust. Also, during 2001, we used
restricted cash of $367.5 million for acquisitions, earned interest of $4.7 million and received a refund of
$311.7 million that was used to reduce the outstanding balances on our credit facilities. At December 31,
2001, $4.6 million remains in trust and is recorded as restricted cash.
Sale of Marketable Securities
In connection with our merger with AMFM on August 30, 2000, Clear Channel and AMFM
entered into a Consent Decree with the Department of Justice regarding AMFM’s investment in Lamar
Advertising Company. The Consent Decree, among other things, required us to sell all of our 26.2
million shares of Lamar by December 31, 2002 and relinquish all shareholder rights during the
disposition period. During the year ended December 31, 2001, we received proceeds of $920.0 million
relating to the sale of 24.9 million shares of Lamar common stock. These proceeds were used to pay
down our existing credit facility balance.