Lamar Advertising's Strategic Refinancing to Enhance Liquidity
Lamar Advertising's Strategic Refinancing Initiative
Lamar Advertising Company (NASDAQ: LAMR), renowned for its extensive outdoor advertising platforms, has recently completed a significant refinancing undertaking worth $1.1 billion. This initiative, executed through its subsidiary, Lamar Media Corp., aims to fortify the company's balance sheet while enhancing liquidity.
Financial Flexibility and Future Growth
According to Jay Johnson, the executive vice president and chief financial officer of Lamar, these refinancing transactions underscore the confidence the capital markets have in the company and its optimistic outlook for the outdoor advertising sector. Johnson remarked, "These transactions provide valuable flexibility that positions us well for continued investment and growth."
Details of the Refinancing Transactions
The refinancing spectrum includes the issuance of $400 million in Senior Notes with a 5.375% interest rate, maturing in 2033. The funds amassed from these notes are earmarked for repaying existing debts, notably under the revolving segment of the senior credit facility as well as the Accounts Receivable Securitization Program.
Establishing a New Term Loan Facility
In a complementary move, Lamar has secured a new 7-year Term Loan B facility valued at $700 million. The proceeds from this loan will be allocated to refinancing an existing $600 million Term Loan B due in 2027, supplementing repayments of outstanding amounts from the revolving side of its senior credit facility. The TLB is priced at 150 basis points over SOFR, providing an enticing deal for the company.
Enhancing Liquidity and Reducing Exposure to Floating Interest Rates
These transactions are strategically designed to be leverage neutral while amplifying Lamar's liquidity to exceed $800 million. Furthermore, they effectively mitigate the company’s exposure to floating interest rates and prolong the maturity profile of its debt obligations.
Overview of Lamar Advertising Company
Established in 1902, Lamar Advertising Company stands as one of North America's preeminent outdoor advertising firms, currently operating over 366,000 displays throughout the United States and Canada. The company provides advertisers with diverse advertising formats including billboards, interstate logo placements, transit, and airport advertising. In addition to traditional out-of-home ad spaces, Lamar boasts the largest digital billboard network in the United States, featuring more than 5,200 digital displays.
Company Contact Information
Buster Kantrow
Director of Investor Relations
Lamar Advertising Company
(225) 926-1000
bkantrow@lamar.com
Frequently Asked Questions
What refinancing transactions has Lamar completed?
Lamar Advertising has finalized $1.1 billion in refinancing, including $400 million in Senior Notes and a $700 million Term Loan B facility.
What is the purpose of the refinancing?
The refinancing is intended to strengthen the company's balance sheet, improve liquidity, and reduce exposure to floating interest rates.
How will the funds from the refinancing be utilized?
Proceeds will be used to repay outstanding debts under the senior credit facility and the Accounts Receivable Securitization Program.
Who is the CFO of Lamar Advertising Company?
Jay Johnson currently serves as the executive vice president and chief financial officer of Lamar Advertising Company.
What is Lamar's position in the outdoor advertising industry?
Lamar Advertising Company is one of the largest outdoor advertising companies in North America, with a vast network of advertising displays across the continent.
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