PRINT THIS PAGE Bain Capital, THL now pay $36 per share to complete Clear Channel buy-out14/05/2008. Source: AltAssets. 
The legal dispute over financing the buy-out of Clear Channel Communications appears to be resolved. Bain Capital Partners and Thomas H. Lee Partners, supported by a banking consortium, have now agreed to acquire Clear Channel for $36 per share per share or approximately $17.9bn, down from the original $37.60 per share and the later revised $39.20 per share. Bain Capital and THL will have to pay a higher interest rate on the debt than previously agreed.
The financing for the transaction was agreed prior to the turmoil in the credit markets. In March of this year, Bain Capital and THL filed complaints in the Supreme Court of the State of New York and the Texas State Court in Bexar County, Texas, against Citigroup, Morgan Stanley, Credit Suisse, The Royal Bank of Scotland, Deutsche Bank and Wachovia to enforce binding commitments by the banks to provide debt financing for the Clear Channel acquisition. Clear Channel was a plaintiff in the Texas complaint.
Mark P Mays, CEO, Clear Channel, said, 'This revised agreement is a win for our shareholders because it provides them with substantial value and certainty while avoiding the delay and inherent risks associated with complex litigation.
'Importantly, this agreement greatly increases the certainty that the merger will close because all debt and equity funds will be deposited in escrow until the transaction closes. Clear Channel's business prospects will be enhanced further through an improved capital structure that includes a lower debt load,' he added.
John P Connaughton, a managing director at Bain Capital, said, 'We believe this agreement, and the definitive long-term financing package the banks have agreed to provide, offers clarity and confidence to Clear Channel's customers, employees and partners.'
Scott M Sperling, co-president of THL, added, 'We appreciate that the banks have provided the company with the robust, long-term financing that will allow Clear Channel to achieve its outstanding operational and growth potential.'
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