iHeartMedia 2010 Annual Report Download - page 57

We repurchased $639.2 million aggregate principal amount of the AMFM Operating Inc. 8% senior notes pursuant to a tender
offer and consent solicitation in connection with the merger. The remaining 8% senior notes were repaid at maturity on November 1,
2008. The aggregate loss on the extinguishment of debt recorded in 2008 as a result of the tender offer for the AMFM Operating Inc.
8% senior notes was $8.0 million.
On August 7, 2008, we announced that we commenced a cash tender offer and consent solicitation for the outstanding
$750.0 million principal amount of 7.65% senior notes due 2010. The tender offer and consent payment expired on September 9,
2008. The aggregate principal amount of 7.65% senior notes validly tendered and accepted for payment was $363.9 million. We
recorded a $21.8 million loss in “Other income (expense) – net” during the pre-merger period as a result of the tender.
We terminated our cross currency swaps on July 30, 2008 by paying the counterparty $196.2 million from available cash on
hand.
On January 15, 2008, we repaid our 4.625% senior notes at their maturity for $500.0 million with proceeds from our bank credit
facility. On June 15, 2008, we repaid our 6.625% senior notes at their maturity for $125.0 million with available cash on hand.
D
ividends
We have not paid cash dividends on the shares of our common stock since the merger and our ability to pay dividends is subject
to restrictions should we seek to do so in the future. Our debt financing arrangements include restrictions on our ability to pay
dividends.
Prior to the merger, we declared a $93.4 million dividend on December 3, 2007 payable to shareholders of record on
December 31, 2007 and paid on January 15, 2008.
Capital Expenditures
Capital expenditures for the years ended December 31, 2010, 2009 and 2008 were as follows:
A
cquisitions
During 2009, our Americas outdoor segment paid $5.0 million primarily for the acquisition of land and buildings.
We acquired FCC licenses in our radio segment for $11.7 million in cash during 2008. We acquired outdoor display faces and
additional equity interests in international outdoor companies for $96.5 million in cash during 2008. Our national representation
business acquired representation contracts for $68.9 million in cash during 2008.
P
urchases of Additional Equity Interests
During 2009, our Americas outdoor segment purchased the remaining 15% interest in our consolidated subsidiary, Paneles
Napsa S.A., for $13.0 million and our International outdoor segment acquired an additional 5% interest in our consolidated
subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.
Certain Relationships with the Sponsors
We are party to a management agreement with certain affiliates of the Sponsors and certain other parties pursuant to which such
affiliates of the Sponsors will provide management and financial advisory services until 2018. These arrangements require
management fees to be paid to such affiliates of the Sponsors for such services at a rate not greater than $15.0 million per year plus
reimbursable expenses. During the years ended December 31, 2010 and 2009, we recognized management fees and reimbursable
expenses of $17.1 million and $20.5 million, respectively. For the post-merger period of 2008, we recognized Sponsors’ management
fees and reimbursable expenses of $6.3 million.
52
(In millions)
Year Ended December 31, 201
0
Radio
Broadcastin
g
Americas
Outdoor
Advertisin
g
International
Outdoor
Advertisin
g
Corporate and
Other
Total
2010 capital
ex
p
enditures $ 35.5 $ 96.7 $ 98.6 $ 10.7 $ 241.5
2009 capital
ex
p
enditures $41.9 $84.4 $91.5 $ 6.0 $ 223.8
2008 capital
ex
p
enditures $ 61.5 $ 175.8 $ 182.5 $ 10.7 $ 430.5