Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) announced on April 6, 2026 that it has begun a formal consent solicitation to secure holder approval for amendments to three series of its senior secured notes. The move is tied directly to the company’s upcoming merger with Madison Parent Inc., a transaction slated for completion in the third quarter of 2026. By reshaping the “Change of Control” definition and adjusting holder eligibility, Clear Channel hopes to avoid triggering mandatory redemption provisions that would otherwise arise from the merger.
Why the amendment matters
The three note tranches under review total $2.915 billion in principal:
- $865 million of 7.875 % notes due 2030 (CUSIPs 18453HAF3 and U1828LAE8)
- $1.15 billion of 7.125 % notes due 2031 (CUSIPs 18453HAG1 and U1828LAF5)
- $900 million of 7.500 % notes due 2033 (CUSIPs 18453HAH9 and U1828LAG3)
Under the existing indentures, the merger would be classified as a “Change of Control,” obligating Clear Channel to make a cash offer equal to 101 % of the outstanding principal plus accrued interest. By redefining that trigger, the company can sidestep an immediate, large‑scale redemption that could strain liquidity and disrupt the merger timeline.
Structure of the consent solicitation
The solicitation follows the terms laid out in a Consent Solicitation Statement dated April 6, 2026. Key procedural elements include:
- Expiration: Holders must submit consent by 5:00 p.m. New York time on April 10, 2026, unless the company extends the deadline for any series.
- Revocation window: Consents may be withdrawn up to the earlier of the “Effective Time” (the moment the supplemental indenture is executed) or the expiration deadline.
- Requisite Consent: Approval requires a majority‑in‑interest of each note series, excluding notes owned by Clear Channel or its affiliates.
The statement also outlines a “Consent Payment” that will be distributed to holders who both consent before the deadline and retain that consent through the revocation period:
- $2,162,500 for the 2030 series
- $2,875,000 for the 2031 series
- $2,250,000 for the 2033 series
These amounts are pro‑rata, based on the holder’s share of the respective issue. Holders who miss the deadline or revoke their consent will forfeit the payment.
Conditions tied to the payment
- Satisfaction of “Consent Payment Conditions” as defined in the solicitation statement, which include securing the Requisite Consent and the successful closing of the merger.
- Absence of a revocation before the specified deadline.
If the merger fails to close, the amendments automatically lapse, and no payment will be made. Conversely, if the required majority does not materialize by the April 10 deadline, Clear Channel will be forced to honor the original Change‑of‑Control redemption clause, offering 101 % cash to all noteholders of the affected series within 30 days of the merger’s consummation.
Parties facilitating the process
- J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC have been appointed as solicitation agents. They will field inquiries at (866) 834‑4666 (toll‑free) or (212) 834‑7489 (collect).
- D.F. King & Co., Inc. serves as both information and tabulation agent, reachable at (646) 971‑2689 for institutional participants, (800) 290‑6433 for retail investors, or via email at the address provided in the solicitation packet.
Industry context and competitive implications
The outdoor advertising sector has been consolidating rapidly, with major players seeking scale to justify investments in programmatic buying platforms, digital advertising technology, and data‑driven targeting. Clear Channel’s merger with Madison Parent—a private‑equity‑backed entity—positions the combined company to compete more aggressively against rivals such as Outfront Media and JCDecaux, especially in the United States market where programmatic inventory is expanding.
However, the financing structure of the deal has raised eyebrows among bond market participants. Senior secured notes, which sit atop the capital stack, typically enjoy covenants that protect holders from unexpected corporate actions. By amending the “Change of Control” clause, Clear Channel is effectively trading a degree of creditor protection for strategic flexibility. Investors will weigh the short‑term cash incentive of the Consent Payment against the longer‑term risk of a potentially larger redemption if the amendment fails.
Potential impact on Clear Channel’s balance sheet
If the consent threshold is met and the supplemental indentures become effective, the company avoids a $29.15 billion‑scale redemption (the aggregate principal of the three note series multiplied by 101 %). Instead, it disburses roughly $7.3 million in total Consent Payments—a negligible amount relative to the size of the outstanding debt. This outcome preserves cash for operational integration, network upgrades, and the rollout of next‑generation digital out‑of‑home assets.
Conversely, a failure to secure the requisite consent would trigger the original redemption clause, compelling Clear Channel to raise cash—likely through a combination of revolving credit facilities, asset sales, or new issuance—to meet the 101 % payout. Such a scenario could strain liquidity and potentially delay the merger, sending ripples through the broader ad‑tech ecosystem.
Legal and regulatory considerations
The solicitation is being conducted in compliance with all applicable securities laws. In jurisdictions where a licensed broker or dealer must facilitate the process, the solicitation will be executed on Clear Channel’s behalf by duly registered intermediaries. The company’s statement explicitly notes that no recommendation is being made to holders; each investor must decide independently whether to consent.
Outlook and next steps
Clear Channel has indicated that the supplemental indentures, once executed, will become operative immediately before the merger closes. The company expects the merger to finalize by the end of Q3 2026, assuming the requisite consents are obtained and no material adverse changes occur.
Stakeholders should monitor:
- Consent submission levels as the April 10 deadline approaches.
- Any extensions to the solicitation period, which could signal difficulty in reaching the required majority.
- Market reaction to the merger announcement and the consent solicitation, especially in the high‑yield bond market where the notes trade.
The outcome will shape not only Clear Channel’s capital structure but also the competitive dynamics of the outdoor advertising industry as it accelerates toward programmatic, data‑rich campaigns.
Get in touch with our Adtech experts
