Clear Channel Communications Inc., the largest U.S. radio broadcaster, has agreed to a $17.9 billion buyout, less than the original accord, after private-equity firms and banks financing the deal reached a legal settlement.
Investors will get $36 a share, or 8.2 percent less than the $39.20 Bain Capital LLC and Thomas H. Lee Partners LP offered to pay last year, Clear Channel said in a statement late Tuesday. The earlier price valued the buyout at about $19.5 billion.
The agreement caps more than 1 1/2 years of wrangling over the buyout amid declines in radio advertising sales and leveraged lending. The stock plunged as low as $26.92 in recent months on investor concern the deal would fall apart because of financing. The accord with Citigroup Inc. and five other banks settles lawsuits in New York and Texas over claims the lenders refused to provide $22.1 billion in promised funding.
Clear Channel owns seven radio stations in Utah: FM stations KODJ (94.1), KZHT (97.1), KJMY (99.5), KXRV (105.7) and KOSY (106.7), and AM stations KNRS (570) and KALL (700).