Lamar Advertising Company
(
LAMR
) recently announced its intention to redeem $66.1 million worth of
6 5/8% Senior Subordinated Notes due in 2015. The notes will be
redeemed on November 8, 2012, by Lamar Media Corp.
The redemption price has been fixed at 101.104% of principal
amount. Interest accrued will be paid for notes surrendered on the
redemption date.
The notes under consideration will include $36.1 million worth of 6
5/8% Senior Subordinated Notes due in 2015-Series B, and $30.0
million worth of 6 5/8% Senior Subordinated Notes maturing in
2015-Series C.
Prior to this redemption announcement, in July 2012, the company
made similar efforts for reducing its debt balance by redeeming
$122.8 million principal amount of 6 5/8% Senior Subordinated
Notes.
Upon completion of the current redemption in November,
approximately $71.2 million worth of Series C 6 5/8% Senior
Subordinated Notes due in 2015, will be outstanding while there
will be no Series B of similar notes outstanding in Lamar's balance
sheet.
Lamar is a Louisiana-based leading owner and operator of outdoor
advertising structures in the U.S. Exiting the second quarter 2012,
total debt, including current maturities stood at $2.2 billion in
the company's balance sheet. Interest expense in the quarter
totaled $38.6 million, representing a decline of 11% year over
year.
The company is scheduled to release its third quarter 2012
financial results on November 7. The Zacks Consensus Estimate for
the third quarter stands at 14 cents, representing a year-over-year
growth of 261.4%. Estimates for 2012 and 2013 are 14 cents and 58
cents, reflecting annual growth of 577.3% and 327.0%,
respectively.
We currently maintain a Neutral recommendation on Lamar. The
stock also bears a Zacks #3 Rank, translating into a short-term
(1-3 months) Hold rating. Its prime competitor
Clear Channel Outdoor Holdings Inc.
(
CCO
) holds a Zacks #5 (Strong Sell) Rank.
CLEAR CHANL OUT (CCO): Free Stock Analysis
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LAMAR ADVER CO (LAMR): Free Stock Analysis
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