Lamar Advertising Company Announces Proposed Private Offering of Senior Notes

Rhea-AI Summary

Lamar Advertising Company (Nasdaq: LAMR) is seeking to raise approximately $550 million through an institutional private placement of senior notes by its subsidiary, Lamar Media Corp. The proceeds will be used primarily to redeem existing $650 million 5 3/4% Senior Notes due 2026. The transaction's completion is contingent on market conditions, and the notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act. This announcement does not constitute an offer to sell or buy any securities.

Positive

• Intended use of proceeds to redeem higher-cost debt, enhancing financial stability.
• Strengthening the balance sheet by replacing existing senior notes.

Negative

• Contingent on market conditions, which may affect the successful completion of the placement.
• Potential dilution of existing equity investors if new notes impact future financing strategies.

BATON ROUGE, La., Jan. 07, 2021 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) announced today that it is seeking to raise approximately $550.0 million through an institutional private placement of senior notes (the “Notes”) by its wholly owned subsidiary, Lamar Media Corp. (“Lamar Media”). The Notes will be guaranteed on a senior unsecured basis by substantially all of Lamar Media’s domestic subsidiaries. The completion of the proposed offering depends upon several factors, including market conditions.

Lamar Media intends to use the proceeds of this offering, after the payment of fees and expenses, together with cash on hand and borrowings under its senior secured revolving credit facility and Accounts Receivable Securitization Program, to redeem all of its outstanding $650.0 million aggregate principal amount 5 3/4% Senior Notes due 2026.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sales of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act of 1933, as amended (the “Securities Act”).

The Notes and related guarantees subject to the private placement have not been registered under the Securities Act, or any state securities laws, and will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions in reliance on Regulation S. Unless so registered, the Notes and related guarantees may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains forward-looking statements regarding Lamar Media’s ability to complete this private placement and its application of net proceeds. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those results indicated in the forward-looking statements include uncertainties relating to market conditions for corporate debt securities generally and for the securities of advertising companies and for Lamar Media in particular.

This news release is for informational purposes only and is not an offer to sell, or the solicitation of an offer to buy, securities.

Company Contact:

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

FAQ

What is Lamar Advertising's recent private placement amount?

Lamar Advertising is seeking to raise approximately $550 million through the private placement of senior notes.

What will the proceeds from the senior notes be used for?

The proceeds will primarily be used to redeem all outstanding $650 million 5 3/4% Senior Notes due 2026.

Who is eligible to buy the senior notes being offered?

The senior notes are offered only to qualified institutional buyers in reliance on Rule 144A of the Securities Act.

What risks are associated with Lamar Advertising's private placement?

The completion of the private placement hinges on market conditions, which could affect the transaction.