dagblog - Comments for "Limbaugh, Clear Channel, Bain & Romney, and finally...the Clear Channel decency initiative"

On $0.2 billion in free cash

NCD — Mon, 05 Mar 2012 20:19:18 +0000

On $0.2 billion in free cash flow. I guess Bain has to pay pretty high interest on CC junk rated debt. Loaning to Bain is like giving a drink to an alcoholic, they always want more.

Unlike the alcoholic however, you can be sure that by 2014 Bain will come out ahead, and have recovered whatever cash they put into this deal, and others will pay the piper for this episode in Mitt Romney style 'free' enterprise:

Updated: Layoffs at Clear Channel
October 26, 2011
By Mike Stern, Chicago

Radio vets Cosby, Stuck among Clear Channel layoffs
Cory Schouten, Indiana Business Journal
October 27, 2011

Is Romney to Blame for Hundreds of Layoffs at Clear Channel Radio? - CBS News

Oct 31 2011 03:04 PM ET
Clear Channel cutting more on-air talent across the country -- is this the end of local radio?

Clear Channel lays off nine radio staffers in Honolulu

Jan 18 2011 06:59 PM Bakersfield.com

Clear Channel Radio confirmed Tuesday that a round of layoffs has affected employees in Bakersfield....Many other staffers have been affected by Clear Channel cuts in the last two years. The San Antonio, Texas-based company laid off nearly 2,000 employees in January 2009 and another 590 about three months later.

...gotta pay those Bain fees and junk bond interest rates somehow, cutting jobs frees up some cash at least short term, until what's left of the business finally goes bankrupt.

A BILLION DOLLARS IN

Richard Day — Mon, 05 Mar 2012 17:43:47 +0000

In reply to Look at the bright side! Bain

A BILLION DOLLARS IN INTEREST?

wow

Look at the bright side! Bain

NCD — Mon, 05 Mar 2012 16:15:29 +0000

In reply to Limbaugh, Clear Channel, Bain & Romney, and finally...the Clear Channel decency initiative

Look at the bright side! Bain owning Clear Channel is clearly a possible precursor to demise of the company. Romney and Co. are gaming the system as usual, borrowing to the max while firing employees. Maybe Romney can personally pink slip Limbaugh, or write him a personal junk rated IOU for his huge salary..

In a January 30 report, Moody’s Investor Service said that Clear Channel has $16.5 billion in debt coming due by 2016, the largest debt stock of any company with a rating of B3 or lower [a highly speculative rating] in that time. The agency gives Clear Channel bonds a junk Caa2 rating that indicates very high credit risk.....Clear Channel’s consolidated businesses are struggling amid a sea of losses and a $19.9 billion debt load, meanwhile its largest revenue source, radio broadcasting, is a loss leader. Overall, the combined company is set to lose over $200 million in 2011 after notching $4 billion-plus annual losses during the recession.....Forbes-2/2012 link

_________________________________

...Clear Channel generates $1.4 billion in cash flow while paying $1 billion in interest and spending $200 million on capital expenditures, a lender said. That means the company has just $200 million in annual free cash flow available.

The company has $700 million coming due in May 2011, and $4.5 billion due in July 2014. Nearly $2 billion of cash on hand should allow it to make it through 2011, but 2014 is another matter, sources said.

Jim Brady, a former sales director for Clear Channel in the Albany area who is now an independent ad buyer, said that in his area Clear Channel has cut costs too deeply to turn itself around. In 2006, he said, a 24-person sales team sold spots on its local stations, but now that task falls to six people.....NY POST 2010

Only right that CC debt is rated junk and what they broadcast is junk. If Romney could do the same market magic for the country, he could increase the national debt to $85 trillion, and then 85-90% of federal revenue could go to interest.

Ironically, Clear Channel is

Michael Maiello — Mon, 05 Mar 2012 14:45:59 +0000

In reply to Limbaugh, Clear Channel, Bain & Romney, and finally...the Clear Channel decency initiative

Ironically, Clear Channel is in financial trouble because of the debt that was put onto the company's books to finance the Bain buyout. That company is running seriously close to the edge.