Clear Channel Deal Details Emerge

Clear Channel has not yet disclosed the nitty gritty of its revised merger agreement, which should allow it be be taken private by Bain Capital and THL Capital. But I just spoke with someone close to the transaction, and have gleaned the following nuggets:

* The stub equity piece is only semi-voluntary. If CCU shareholders don’t elect to take all $1.1 billion, they’ll be forced to receive it on a pro rata basis. CCU does not expect that to happen, however, particularly because $500 million of it is already spoken for. This includes a $400 million commitment from Highfields Capital Management.

* The revised deal cuts off around $1.75 billion in debt.

* The sponsors handed the lenders 40 basis points on the debt, which works out to between $50-$60 million per year in interest. Maybe makes it easier to syndicate, but this is still likely to be a (smaller) net loss for the banks. That 40bp is also less than the sponsors/CCU have theoretically gotten back since this deal was originally signed, given the macro credit market.

* The deal’s equity piece — including the stub — should drop from around $4 billion to just over $3 billion.

* Deal is completely-papered.

* Don’t necessarily expect the banks to give similar terms on BCE, because that deal can’t include the threat of Texas justice.