Lamar Advertising Company intends to raise roughly $1 billion through private offerings to help pay off some $510 million in debt subject to market conditions, the company announced Tuesday.
The notes, which would be offered through Lamar’s subsidiary Lamar Media Corp., would be used to redeem its outstanding $510 million principal for 5⅜% senior notes due in 2024. The company also plans to repay loans through its banking lender, as well as certain amounts “under the revolving portion of its senior credit facility.”
Director of Investor Relations Buster Kantrow says the proposed bond offering basically represents a refinancing, which will extend the maturity of certain loans and lower interest rates.
“Credit markets are favorable right now and we want to take advantage of that,” Kantrow says, adding that additional funds left over could be used to finance future acquisitions or digital conversions of billboards.
It’s currently unclear if or when the company could issue the new notes, but a second filing shows Lamar Media expects to redeem the 5⅜% notes at a redemption price at 101.8%.
Last year, the company issued some $250 million in senior notes to help refinance debt-related acquisitions.
Lamar reported net revenues of $457.8 million for the third quarter of 2019, a 9.4% increase from the $418.5 million reported for the same quarter of 2018. The company’s fourth-quarter results are expected to be released Feb. 20.