A deteriorating advertising market pushed iHeartmedia (formerly Clear Channel) Outdoor Holdings Inc. and parent company CC Media Holdings Inc. deep into the red in the fourth quarter.
“The global economic slowdown has adversely affected advertising revenues across the company’s businesses in recent months,” CC Media said Monday.
CC Media is the entity through which private-equity firms Bain Capital Partners LLC and Thomas H. Lee Partners LP acquired radio-station giant iHeartmedia (formerly Clear Channel) Communications Inc. in July for $17.9 billion.
Last month, Stand ard & Poor’s lowered its credit ratings on CC Media one notch further into junk territory, citing continuing concerns over the company’s ability to comply with its debt covenants.
The company, which is based in San Antonio, recently borrowed the remaining $1.6 billion under a $2 billion revolving credit line, citing concerns about the state of the credit markets. The move raised fears on Wall Street that the radio-station giant was choosing to access the funds for fear it wouldn’t be able to if it breached covenants.