Lamar Advertising Adds Cleveland, Des Moines, Memphis, Reno and Seattle/Tacoma to Outdoor Portfolio
BATON ROUGE, LA — Lamar Advertising has acquired the assets of Clear Channel Outdoor Holdings in five U.S. markets. The markets were purchased for $458.5 million in cash and add more than 5,500 bulletin and poster faces, including 132 digital billboards, across five US markets to Lamar’s portfolio. Lamar (Nasdaq: LAMR), expects the acquisition to be accretive to Adjusted Funds From Operations per share in 2016.
“We are always thrilled to add high-quality, REIT-eligible assets in attractive markets to our portfolio,” said Lamar chief executive Sean Reilly. “Given Clear Channel’s goal of focusing on its core markets, this is a transaction that makes great sense for both of us. We look forward to bringing our outstanding customer service and dynamic digital-advertising capabilities to Cleveland, Seattle/Tacoma, Des Moines, Memphis and Reno.”
J.P. Morgan Securities LLC acted as sole financial advisor to Lamar on the transaction. Lamar financed the acquisition using $160 million of revolver borrowings and a $300 million term loan bridge facility provided by J.P. Morgan Chase Bank, N.A.
Kean Miller LLP and Locke Lord LLP acted as legal advisors to Lamar.
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Finding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers. Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. In addition, consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify.
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