Baton Rouge billboard giant Lamar Advertising Co. plans to raise $400 million by selling debt to institutional investors.
The senior notes, due in 2026, will be used to pay off $300 million Lamar borrowed to buy 5,500 billboards and poster signs from Clear Channel Outdoor Holdings. The properties are in Seattle and Tacoma, Washington; Cleveland; Des Moines, Iowa; Memphis, Tennessee; and Reno, Nevada.
Lamar has estimated the Clear Channel properties will add $79 million to its annual revenue and $40 million to its earnings before interest, taxes, depreciation and amortization. EBITDA can be used to compare a company’s profitability because the measure removes the impact of financing and accounting decisions.