iHeartMedia 2000 Annual Report Download - page 44

44
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 in a series of transactions from November
8, 2000 to November 20, 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.
At December 31, 2000, we were in compliance with all debt covenants and had satisfied all
financial ratios and tests under the indentures. We expect to be in compliance and satisfy all such
covenants and ratios as may be applicable from time to time during 2001.
Shelf Registration
On July 21, 2000, we filed a Registration Statement on Form S-3 covering a combined $3.0
billion of debt securities, junior subordinated debt securities, preferred stock, common stock, warrants,
stock purchase contracts and stock purchase units (the “shelf registration statement”). The shelf
registration statement also covers preferred securities that may be issued from time to time by our three
Delaware statutory business trusts and guarantees of such preferred securities by us. In September 2000,
we issued $1.5 billion of debt securities registered under the shelf registration statement, leaving $1.5
billion available for future issuance.
Authorized Shares of Common Stock
On April 27, 2000, our shareholders approved an increase to the number of shares of common
stock authorized for issuance from 900 million to 1.5 billion in order to have additional shares available
for possible future acquisitions or financing transactions, stock splits, stock dividends and other issuances,
or to satisfy requirements for additional reservations of shares by reason of future transactions which
might require increased reservations. We currently have no plans to issue any of the additional shares of
common stock.
Restricted Cash
In connection with the AMFM merger and governmental directives, we divested 39 radio stations
for $1.2 billion. Of these proceeds, $839.7 million was placed in restricted trusts for the purchase of
replacement properties. In addition, restricted cash of $439.9 million was acquired from AMFM related
to the divestiture of AMFM radio stations in connection with the merger. The following table details the
reconciliation of divestiture and acquisition activity in the restricted trust accounts:
(In thousands)
Restricted cash resulting from Clear Channel divestitures $ 839,717
Restricted cash purchased in AMFM merger 439,896
Restricted cash used in acquisitions (670,228)
Interest, net of fees 18,756
Restricted cash balance at December 31, 2000 628,141
Less current portion 308,691
Long-term restricted cash $ 319,450
On February 21, 2001, the restricted trusts expired and the $308.7 million not expended on
replacement radio assets was refunded to us. The amount was used to reduce the outstanding balance of
our domestic credit facilities.