Lamar Advertising Company Announces Conditional Redemption of 5 3/4% Senior Notes Due 2026

Rhea-AI Summary

Lamar Advertising Company (Nasdaq: LAMR) announced the intention of its subsidiary, Lamar Media Corp., to redeem all $650 million of its 5 3/4% Senior Notes due 2026, contingent upon fulfilling a Financing Condition of at least $550 million in new debt financing by February 3, 2021. If met, the redemption price will be 102.875% of the principal, plus accrued interest. A notice of redemption is being sent to registered holders through The Bank of New York Mellon Trust Company, N.A. This announcement serves informational purposes and is not a solicitation.

Positive

• Lamar Media plans to redeem $650 million of Senior Notes, signaling confidence in managing debt.
• The redemption price is set at a premium of 102.875%, which may benefit current bondholders.

Negative

• Redemption is conditional on securing at least $550 million in new debt, introducing uncertainty.
• There is no guarantee that the Financing Condition will be fulfilled by the Redemption Date.

BATON ROUGE, La., Jan. 04, 2021 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, today announced that its wholly owned subsidiary, Lamar Media Corp. (“Lamar Media”), intends to redeem in full all $650,000,000 in aggregate principal amount of its outstanding 5 3/4% Senior Notes due 2026 (CUSIP No. ‎513075BL4‎) (the “Notes”), subject to the satisfaction of the Financing Condition (as defined below). The redemption will be made in accordance with the terms of the indenture governing the Notes and the terms of the notice of redemption.

The redemption is conditioned on Lamar Media completing one or more new debt financing transactions totaling at least $550.0 million‎, or such lesser amount as Lamar Media determines is sufficient (the “Financing Condition”) prior to February 3, 2021 (the “Redemption Date”), the proceeds of which will be partially used to fund the redemption of the Notes. There can be no assurances as to when and if such Financing Condition will be completed. The Financing Condition may also be waived by Lamar Media in its sole discretion.

If the Financing Condition is met, Lamar Media expects to redeem the Notes on the Redemption Date at a redemption price equal to ‎102.875%‎ of the aggregate principal amount of the outstanding Notes, plus accrued and unpaid interest to (but not including) the Redemption Date (the “Redemption Price”). Assuming the Financing Condition is met, the Redemption Price will be due and payable on the Redemption Date upon surrender of the Notes.

A notice of redemption is being delivered to all registered holders of the Notes by The Bank of New York Mellon Trust Company, N.A., the trustee for the Notes (the “Trustee”). Copies of the notice of redemption may be obtained from the Trustee by calling 1-800-254-2826.

This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to the Notes or any other securities.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Lamar Media’s ability to fund redemption of the Notes. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements included herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of the businesses of Lamar Media. More detailed information about these factors may be found in the filings made by Lamar Advertising Company and Lamar Media with the Securities and Exchange Commission, including in the Risk Factors section of their combined Annual Report on Form 10-K for the year ended December 31, 2019, as updated by their subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Neither Lamar Advertising nor Lamar Media is under any obligation, and expressly disclaims any such obligation, to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Company Contact:

Buster Kantrow
Director of Investor Relations
Lamar Advertising Company
(225) 926-1000
bkantrow@lamar.com

FAQ

What is the significance of Lamar Advertising's note redemption announcement?

The redemption indicates a strategic move to manage and possibly reduce its debt load.

What is the total amount of Senior Notes Lamar Media intends to redeem?

Lamar Media intends to redeem $650 million in Senior Notes.

What is the redemption price for the Senior Notes?

The redemption price is 102.875% of the aggregate principal amount plus accrued interest.

When is the scheduled redemption date for the Senior Notes?

The scheduled redemption date is February 3, 2021.

What condition must Lamar Media satisfy to proceed with the note redemption?

Lamar Media must complete new debt financing of at least $550 million.