Word that Clear Channel settled a dispute with Providence Equity Partners over a $1 billion sale of TV stations was a bit of good news for shareholders — until they heard that Wachovia, a lender on the deal, filed in North Carolina to get out of its financing commitment.
The lawsuit, available here, could put Clear Channel’s TV deal in the recycle bin with the likes of PHH and Reddy Ice, whose deals fell victim to financing concerns from banks rocked by write-downs in leveraged loans and other securities.
That’s bad news for Clear Channel shareholders. And given how bumpy a ride it’s been waiting for the company’s $20 billion LBO by Thomas H. Lee Partners and Bain Capital to close, they could have used the break.
(Image: Clear Channel executives Lowry Mays, Mark Mays and Randall Mays)
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