AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 29, 2002
REGISTRATION NO. 333-76942
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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AMENDMENT NO. 2
TO
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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CLEAR CHANNEL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
TEXAS 74-1787539
(State or other jurisdiction of incorporation or (I.R.S. Employer Identification No.)
organization)
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CCCI CAPITAL TRUST I
CCCI CAPITAL TRUST II
CCCI CAPITAL TRUST III
(Exact name of registrant as specified in its charter)
DELAWARE 74-6456072
(State or other jurisdiction of incorporation or 74-6456074
organization) 74-6456077
(I.R.S. Employer Identification No.)
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200 EAST BASSE ROAD L. LOWRY MAYS
SAN ANTONIO, TEXAS 78209 CLEAR CHANNEL COMMUNICATIONS, INC.
(210) 822-2828 200 EAST BASSE ROAD
(Address, including zip code, and telephone number, SAN ANTONIO, TEXAS 78209
including area code, of registrant's principal (210) 822-2828
executive offices) (Name, address, including zip code, and telephone
number
including area code, of agent for service)
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Copies to:
STEPHEN C. MOUNT, ESQ.
AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P.
1500 NATIONSBANK PLAZA
300 CONVENT STREET
SAN ANTONIO, TEXAS 78205
(210) 281-7000
(210) 224-2035 (FAX)
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after this registration statement becomes effective.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of earlier effective
registration statement for the same offering. [ ] ____________
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ] ____________
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [X]
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME EFFECTIVE
ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(a), MAY DETERMINE.
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Information contained herein is subject to completion and amendment. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective. This prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.
PROSPECTUS SUBJECT TO COMPLETION
MARCH 28, 2002
$3,000,000,000
CLEAR CHANNEL COMMUNICATIONS, INC.
CCCI CAPITAL TRUST I
CCCI CAPITAL TRUST II
CCCI CAPITAL TRUST III
We will offer and sell, from time to time, in one or more offerings, the
debt and equity securities described in this prospectus. The total offering
price of these securities, in the aggregate, will not exceed $3.0 billion. We
will provide the specific terms of these securities in supplements to this
prospectus. You should carefully read this prospectus and the supplements before
you decide to invest in any of these securities.
CLEAR CHANNEL COMMUNICATIONS, INC.
We will offer and sell, from time to time, in one or more offerings:
- common stock
- senior debt securities
- subordinated debt securities
- junior subordinated debt securities
- Class A and Class B preferred stock
- warrants
- stock purchase contracts
- stock purchase units
- guarantees
The common stock is traded on the New York Stock Exchange under the symbol
"CCU." Any common stock sold pursuant to a prospectus supplement will be listed
on such exchange, subject to official notice of issuance.
The stock purchase contracts will require a purchaser to buy a specific
amount of common stock or preferred stock, and they will obligate Clear Channel
to pay the purchasers specific fees. The stock purchase units will include these
stock purchase contracts and debt securities, junior subordinated debt
securities, debt obligations of the United States of America or its agencies or
instrumentalities, or preferred securities issued by CCCI Capital Trusts I, II
and III. The guarantees will be full, unconditional guarantees of the Clear
Channel Trusts' obligation to distribute specific amounts of cash to the holders
of Clear Channel Trust preferred securities.
THE CLEAR CHANNEL TRUSTS
The CCCI Capital Trusts I, II and III are each Delaware business trusts
that will offer and sell preferred securities, from time to time in one or more
offerings. Each Clear Channel Trust will use all of the proceeds from the sale
of its preferred securities to buy junior subordinated debt securities of Clear
Channel. The Clear Channel Trusts will receive cash payments from the junior
subordinated debt securities, and each trust will distribute these payments to
the holders of its preferred and common securities. Clear Channel will own all
of the common securities of the Clear Channel Trusts.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
FOR A DISCUSSION OF THE RISKS ASSOCIATED WITH AN INVESTMENT IN THE
SECURITIES, SEE "GENERAL DESCRIPTION OF SECURITIES AND RISK FACTORS" ON PAGE 7.
The date of this prospectus is , 2002.
TABLE OF CONTENTS
PAGE
----
About This Prospectus....................................... 3
Clear Channel Communications, Inc........................... 3
Recent Developments......................................... 5
The Clear Channel Trusts.................................... 5
Ratio of Earnings to Combined Fixed Charges and Preferred
Stock Dividends........................................... 6
Use of Proceeds............................................. 6
Holding Company Structure................................... 7
General Description of Securities and Risk Factors.......... 7
Description of Senior and Subordinated Debt Securities...... 7
Description of Junior Subordinated Debt Securities.......... 18
Description of Preferred Stock.............................. 27
Description of Common Stock................................. 27
Description of Warrants..................................... 29
Description of Stock Purchase Contracts and Stock Purchase
Units..................................................... 31
Description of Preferred Securities......................... 32
Description of Guarantees................................... 34
ERISA Matters............................................... 37
Plan of Distribution........................................ 37
Legal Opinions.............................................. 39
Experts..................................................... 39
Where You Can Find More Information......................... 39
2
EXPLANATORY NOTE
When we refer to Clear Channel in this prospectus, we are referring to
Clear Channel Communications, Inc. When we refer to the Clear Channel Trusts in
this prospectus, we are referring to the CCCI Capital Trusts. When the word "we"
"our" or "us" is used in this prospectus, we are referring to both Clear Channel
and the Clear Channel Trusts together.
ABOUT THIS PROSPECTUS
This prospectus is part of a shelf registration statement that we filed
with the SEC. By using a shelf registration statement, we may sell, from time to
time, in one or more offerings, any combination of the securities described in
this prospectus. The total dollar amount of the securities we sell through these
offerings will not exceed $3.0 billion.
This prospectus only provides you with a general description of the
securities we may offer. Each time we sell securities, we will provide a
prospectus supplement that contains specific information about the terms of the
securities. The prospectus supplement may also add, update or change information
contained in this prospectus. You should read both this prospectus and any
prospectus supplement together with the additional information described under
the heading "Where You Can Find More Information."
This prospectus does not contain separate financial statements for the
Clear Channel Trusts. We do not believe these financial statements would be
useful since each trust is a direct or indirect wholly-owned subsidiary of Clear
Channel, and we file consolidated financial information under the Exchange Act.
The Clear Channel Trusts will not have any independent function other than to
issue common and preferred securities and to purchase junior subordinated debt
securities of Clear Channel. Clear Channel will provide a full, unconditional
guarantee of each trust's obligations under their respective preferred
securities.
You should rely only on the information contained or incorporated by
reference in this prospectus and the prospectus supplement. We have not
authorized anyone else to provide you with different information. If anyone
provides you with different or inconsistent information, you should not rely on
it. We will not make an offer to sell these securities in any state where the
offer or sale is not permitted. You should assume that the information appearing
in this prospectus, as well as the information we previously filed with the SEC
and incorporated by reference into this prospectus, is accurate only as of the
date of the documents containing the information.
CLEAR CHANNEL COMMUNICATIONS, INC.
Clear Channel Communications, Inc. is a diversified media company with
three reportable business segments: radio broadcasting, outdoor advertising and
live entertainment. As of December 31, 2001, Clear Channel owned, programmed, or
sold airtime for 1,240 domestic radio stations, which includes those stations
that are operated pursuant to a local marketing agreement or joint sales
agreement (FCC licenses not owned by Clear Channel) and owned a leading national
radio network. In addition, at December 31, 2001, Clear Channel had equity
interests in various domestic and international radio broadcasting companies.
Clear Channel was also one of the world's largest outdoor advertising companies
based on total advertising display inventory of 156,623 domestic display faces
and 573,416 international display faces. In addition, Clear Channel was one of
the world's largest diversified promoters, producers and venue operators for
live entertainment events. As of December 31, 2001, Clear Channel owned or
operated 104 live entertainment venues domestically and 31 live entertainment
venues internationally, which includes 36 domestic venues and three
international venues where Clear Channel either owns a non-controlling interest
or has booking, promotions or consulting agreements. Clear Channel also owns or
programs 19 television stations, owns a media representation firm and represents
professional athletes. Clear Channel was incorporated in Texas in 1974. Clear
Channel's principal executive offices are located at 200 East Basse Road, San
Antonio, Texas 78209 (telephone: 210-822-2828).
3
Clear Channel's radio broadcasting segment includes both radio stations for
which Clear Channel is the licensee and for which it programs or sells air time
under local marketing agreements or joint sales agreements. Clear Channel's
radio broadcasting segment also operates radio networks and produces syndicated
programming. Clear Channel's outdoor advertising segment includes advertising
display faces which it owns or operates under lease management agreements. Clear
Channel's live entertainment segment operates domestic and international
entertainment venues which it owns or operates under lease management
agreements. Clear Channel's live entertainment segment also produces live music
events, Broadway and touring Broadway shows, family entertainment shows and
specialized sports and motor sports events.
4
RECENT DEVELOPMENTS
ACKERLEY MERGER
On October 5, 2001, Clear Channel entered into a merger agreement to
acquire The Ackerley Group, Inc. by merging one of its wholly-owned subsidiaries
with and into Ackerley. Clear Channel structured the merger as a tax-free,
stock-for-stock transaction. Each share of Ackerley common stock will convert
into 0.35 of a share of Clear Channel's common stock. Based on the number of
shares outstanding as of December 31, 2001 and assuming that no additional
shares of Ackerley common stock are issued before the completion of the merger,
Clear Channel will issue approximately 11.9 million shares of its common stock
in the merger to the stockholders of Ackerley. Either company can terminate the
merger agreement if the merger is not completed by October 5, 2002.
Ackerley holds a diversified group of outdoor, broadcasting and interactive
media assets. Ackerley operates an outdoor media company with significant
positions in Massachusetts, Washington and Oregon. Ackerley owns, or operates
under management agreements, 18 television stations. Ackerley's radio
broadcasting segment includes five stations in Seattle, Washington (four of
which are owned and one for which Ackerley sells airtime).
In addition, Clear Channel will indirectly assume, or be obligated to
refinance Ackerley's long-term debt in connection with the Ackerley merger,
which as of December 31, 2001 was approximately $290.6 million.
Clear Channel will not complete the Ackerley merger before the filing of
this prospectus, if at all. Numerous conditions must be satisfied before the
completion of the merger, including the receipt of regulatory approvals and the
approval of the Ackerley stockholders.
The description of the proposed merger with Ackerley is not complete. To
understand the terms of the merger fully and for a more complete description,
you should read the merger agreement and the detailed disclosure in our
registration statement on Form S-4 filed with the SEC on November 29, 2001.
THE CLEAR CHANNEL TRUSTS
Each Clear Channel Trust is a statutory business trust formed under
Delaware law pursuant to a separate declaration of trust executed by Clear
Channel, as depositor for the Clear Channel Trust, and the trustees of the
trust, and the filing of a certificate of trust with the Delaware Secretary of
State. The declarations of trust will be amended and restated in their entirety
substantially in the form filed as an exhibit to the registration statement of
which this prospectus is a part and will be qualified as indentures under the
Trust Indenture Act of 1939. Unless the accompanying prospectus supplement
provides otherwise, each Clear Channel Trust exists for the sole purposes of
- issuing its preferred securities,
- investing the gross proceeds of the sale of its preferred securities in
junior subordinated debt securities of Clear Channel, and
- engaging in only those other activities necessary or incidental thereto.
All of each Clear Channel Trusts' common securities will be owned by Clear
Channel. The common securities will rank equally with the preferred securities
and payments on the common securities will be made on a pro rata basis with the
preferred securities. However, upon the occurrence and continuance of an event
of default under the applicable amended and restated declaration of trust, the
rights of the holders of the applicable common securities to payment in respect
of distributions and payments upon liquidation, redemption and otherwise will be
subordinated to the rights of the holders of the applicable preferred
securities. Clear Channel will acquire common securities having an aggregate
liquidation amount equal to a minimum of 1% of the total capital of each Clear
Channel Trust.
5
Each Clear Channel Trust will have a term of at least 20 but not more than
50 years, but may terminate earlier as provided in the applicable amended and
restated declaration of trust. Each Clear Channel Trust's business and affairs
will be conducted by the trustees. Clear Channel will be entitled to appoint,
remove or replace any of, or increase or reduce the number of, the trustees of
each Clear Channel Trust. The duties and obligations of the trustees will be
governed by the amended and restated declaration of trust of each Clear Channel
Trust. At least one of the trustees of each Clear Channel Trust will be a person
who is an employee or officer of or who is affiliated with Clear Channel. One
trustee of each Clear Channel Trust will be a financial institution that is not
affiliated with Clear Channel, which will act as property trustee and as
indenture trustee for the purposes of the Trust Indenture Act, pursuant to the
terms set forth in a prospectus supplement. In addition, unless the property
trustee maintains a principal place of business in the State of Delaware and
otherwise meets the requirements of applicable law, one trustee of each Clear
Channel Trust will be a legal entity having a principal place of business in, or
an individual resident of, the State of Delaware. Clear Channel will pay all
fees and expenses related to each Clear Channel Trust and the offering of the
preferred securities. Unless otherwise set forth in a prospectus supplement, the
property trustee will be The Bank of New York, and the Delaware trustee will be
The Bank of New York (Delaware). The office of the Delaware trustee in the State
of Delaware is 100 White Clay Center, Newark, Delaware 19711. The principal
place of business of each Clear Channel Trust is c/o Clear Channel
Communications, Inc., 200 East Basse Road, San Antonio, Texas 78209, telephone:
(210) 822-2828.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
The following table sets forth the ratio of earnings to combined fixed
charges and preferred stock dividends for Clear Channel.
YEARS ENDED DECEMBER 31,
--------------------------------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
* 2.20 2.04 1.83 2.32
*For the year ended December 31, 2001, fixed charges exceeded earnings before
income taxes and fixed charges by $1.3 billion.
The ratio of earnings to combined fixed charges and preferred stock
dividends was computed on a total enterprise basis. Earnings represent income
from continuing operations before income taxes less equity in undistributed net
income (loss) of unconsolidated affiliates plus fixed charges. Fixed charges
represent interest, amortization of debt discount and expense, and the estimated
interest portion of rental charges. Clear Channel has no preferred stock
outstanding for any period presented.
USE OF PROCEEDS
Unless indicated otherwise in a prospectus supplement, Clear Channel
expects to use the net proceeds from the sale of its securities for general
corporate purposes, including repayment of borrowings, working capital, capital
expenditures, stock repurchase programs and acquisitions. Unless otherwise
specified in the accompanying prospectus supplement, each Clear Channel Trust
will use all proceeds received from the sale of its preferred securities to
purchase junior subordinated debt securities of Clear Channel.
6
HOLDING COMPANY STRUCTURE
Clear Channel is a holding company and its assets consist primarily of
investments in its subsidiaries and majority-owned partnerships. Clear Channel's
rights and the rights of its creditors, including holders of debt securities or
junior subordinated debt securities, to participate in the distribution of
assets of any person in which Clear Channel owns an equity interest will be
subject to prior claims of the person's creditors upon the person's liquidation
or reorganization. However, Clear Channel may itself be a creditor with
recognized claims against this person, but claims of Clear Channel would still
be subject to the prior claims of any secured creditor of this person and of any
holder of indebtedness of this person that is senior to that held by Clear
Channel. Accordingly, the holder of debt securities or junior subordinated debt
securities may be deemed to be effectively subordinated to those claims.
GENERAL DESCRIPTION OF SECURITIES AND RISK FACTORS
Clear Channel may offer shares of common stock or preferred stock, debt
securities, junior subordinated debt securities, warrants, stock purchase
contracts, stock purchase units, or any combination of them either individually
or as units consisting of one or more securities under this prospectus. Each
Clear Channel Trust may offer preferred securities under this prospectus.
THE SECURITIES TO BE OFFERED MAY INVOLVE A HIGH DEGREE OF RISK. THE RISKS
WILL BE SET FORTH IN THE PROSPECTUS SUPPLEMENT RELATING TO THE SECURITY. IN
ADDITION, ADDITIONAL RISK FACTORS RELATING TO CLEAR CHANNEL'S BUSINESS MAY BE
SET FORTH IN A PROSPECTUS SUPPLEMENT OR INCLUDED IN CLEAR CHANNEL'S MOST RECENT
ANNUAL REPORT ON FORM 10-K OR OTHER DOCUMENT THAT IS INCORPORATED BY REFERENCE
INTO THIS DOCUMENT.
DESCRIPTION OF SENIOR AND SUBORDINATED DEBT SECURITIES
The following description of Clear Channel's senior and subordinated debt
securities summarizes the general terms and provisions of its debt securities to
which any prospectus supplement may relate. We will describe the specific terms
of Clear Channel's debt securities and the extent, if any, to which the general
provisions summarized below may apply to any series of its debt securities in
the prospectus supplement relating to the series. In this prospectus, "debt
securities" will be used to refer to senior and subordinated debt securities,
but not to junior subordinated debt securities.
Clear Channel may issue its senior debt securities from time to time, in
one or more series under a senior indenture, between Clear Channel and The Bank
of New York, as senior trustee, or another senior trustee named in a prospectus
supplement. The form of senior indenture is filed as an exhibit to the
registration statement. Clear Channel may issue its subordinated debt securities
from time to time, in one or more series under a subordinated indenture, between
Clear Channel and The Bank of New York, as subordinated trustee, or another
subordinated trustee named in a prospectus supplement. The form of subordinated
indenture is filed as an exhibit to the registration statement. Together the
senior indenture and the subordinated indenture are called the indentures, and
together the senior trustee and the subordinated trustee are called the debt
trustees. Both indentures are governed by New York law. None of the indentures
will limit the amount of debt securities that may be issued. The applicable
indenture will provide that debt securities may be issued up to an aggregate
principal amount authorized by Clear Channel and may be payable in any currency
or currency unit designated by it or in amounts determined by reference to an
index.
GENERAL
The senior debt securities will be unsecured and will rank equally with
Clear Channel's other unsecured and unsubordinated debt, unless Clear Channel is
required to secure the senior debt securities as described below under
"-- Senior Debt Securities." Clear Channel's obligations under any subordinated
debt securities will be subordinate in right of payment to all of its senior
indebtedness, and will be
7
described in an accompanying prospectus supplement. Clear Channel will issue
debt securities from time to time and offer its debt securities on terms
determined by market conditions at the time of sale.
Clear Channel may issue its debt securities in one or more series with the
same or various maturities, at par, at a premium, or at a discount. Any debt
securities bearing no interest or interest at a rate which at the time of
issuance is below market rates will be sold at a discount, which may be
substantial, from their stated principal amount. We will describe the federal
income tax consequences and other special considerations applicable to any
substantially discounted debt securities in the related prospectus supplement.
You should refer to the prospectus supplement for the following terms of
the debt securities offered hereby:
- the designation, aggregate principal amount and authorized denominations
of the debt securities;
- the percentage of the principal amount at which Clear Channel will issue
the debt securities;
- the date or dates on which the debt securities will mature;
- the annual interest rate or rates of the debt securities, or the method
of determining the rate or rates;
- the date or dates on which any interest will be payable, the date or
dates on which payment of any interest will commence and the regular
record dates for the interest payment dates;
- the terms of any mandatory or optional redemption, including any
provisions for any sinking, purchase or other similar funds, or repayment
options;
- the currency, currencies or currency units for which the debt securities
may be purchased and in which the principal, any premium and any interest
may be payable;
- if the currency, currencies or currency units for which the debt
securities may be purchased or in which the principal, any premium and
any interest may be payable is at Clear Channel's election or the
purchaser's election, the manner in which the election may be made;
- if the amount of payments on the debt securities is determined by an
index based on one or more currencies or currency units, or changes in
the price of one or more securities or commodities, the manner in which
the amounts may be determined;
- the extent to which any of the debt securities will be issuable in
temporary or permanent global form, and the manner in which any interest
payable on a temporary or permanent global security will be paid;
- the terms and conditions upon which the debt securities may be
convertible into or exchanged for common stock, preferred stock, or
indebtedness or other securities included in this document;
- information with respect to book-entry procedures, if any;
- a discussion of the federal income tax, accounting and other special
considerations, procedures and limitations with respect to the debt
securities; and
- any other specific terms of the debt securities not inconsistent with the
applicable indenture.
If Clear Channel sells any of the debt securities for one or more foreign
currencies or foreign currency units or if the principal of, premium, if any, or
interest on any series of debt securities will be payable in one or more foreign
currencies or foreign currency units, it will describe the restrictions,
elections, federal income tax consequences, specific terms and other information
with respect to the issue of debt securities and the currencies or currency
units in the related prospectus supplement.
Unless specified otherwise in a prospectus supplement, the principal of,
premium on, and interest on the debt securities will be payable, and the debt
securities will be transferable, at the corporate trust office of the applicable
debt trustee in New York, New York. However, Clear Channel may make payment of
8
interest at its option by check mailed on or before the payment date to the
address of the person entitled to the interest payment as it appears on the
registry books of Clear Channel or its agents.
Unless specified otherwise in a prospectus supplement, Clear Channel will
issue the debt securities only in fully registered form and in denominations of
$1,000 and any integral multiple of $1,000. No service charge will be made for
any transfer or exchange of any debt securities, but Clear Channel may, except
in specific cases not involving any transfer, require payment of a sufficient
amount to cover any tax or other governmental charge payable in connection with
the transfer or exchange. Unless we specify otherwise in the prospectus
supplement, Clear Channel will pay interest on outstanding debt securities to
holders of record on the date 15 days immediately prior to the date the interest
is to be paid.
Clear Channel's rights and the rights of its creditors, including holders
of debt securities, to participate in any distribution of assets of any of Clear
Channel subsidiary upon its liquidation or reorganization or otherwise is
subject to the prior claims of creditors of the subsidiary, except to the extent
that Clear Channel's claims as a creditor of the subsidiary may be recognized.
Clear Channel's operations are conducted through its subsidiaries and,
therefore, Clear Channel is dependent upon the earnings and cash flow of its
subsidiaries to meet its obligations, including obligations under the debt
securities. The debt securities will be effectively subordinated to all
indebtedness of Clear Channel's subsidiaries.
GLOBAL SECURITIES
Clear Channel may issue debt securities of a series in whole or in part in
the form of one or more global securities and will deposit them with or on
behalf of a depositary identified in the prospectus supplement relating to that
series. Clear Channel may issue global securities only in fully registered form
and in either temporary or permanent form. Unless and until it is exchanged in
whole or in part for the individual debt securities represented thereby, a
global security may not be transferred except as a whole by the depositary for
the global security to a nominee of the depositary or by a nominee of the
depositary to the depositary or another nominee of the depositary or by the
depositary or any nominee of the depositary to a successor or any nominee.
The specific terms of the depositary arrangement relating to a series of
debt securities will be described in the prospectus supplement relating to that
series. It is anticipated that the following provisions will generally apply to
depositary arrangements.
Upon the issuance of a global security, the depositary for the global
security or its nominee will credit on its book entry registration and transfer
system the principal amounts of the individual debt securities represented by
the global security to the accounts of persons that have accounts with the
depositary. The accounts will be designated by the dealers, underwriters or
agents with respect to the debt securities or by Clear Channel if the debt
securities are offered and sold directly by it. Ownership of beneficial
interests in a global security will be limited to persons that have accounts
with the applicable depositary participants or persons that hold interests
through participants. Ownership of beneficial interests in the global security
will be shown on, and the transfer of that ownership will be effected only
through, records maintained by
- the applicable depositary or its nominee, with respect to interests of
participants, and
- the records of participants, with respect to interests of persons other
than participants.
The laws of some states require that purchasers of securities take physical
delivery of the securities in definitive form. These limits and laws may impair
the ability to transfer beneficial interests in a global security.
So long as the depositary for a global security or its nominee is the
registered owner of the global security, the depositary or the nominee will be
considered the sole owner or holder of the debt securities represented by the
global security for all purposes under the applicable indenture. Except as
provided below, owners of beneficial interests in a global security will
- not be entitled to have any of the individual debt securities of the
series represented by the global security registered in their names;
9
- not receive or be entitled to receive physical delivery of any debt
security of that series in definitive form; and
- not be considered the owners or holders thereof under the applicable
indenture governing the debt securities.
Payments of principal of, any premium on, and any interest on individual
debt securities represented by a global security registered in the name of a
depositary or its nominee will be made to the depositary or its nominee as the
registered owner of the global security representing the debt securities.
Neither Clear Channel, the applicable debt trustee for the debt securities, any
Paying Agent, nor the Security Registrar for the debt securities will have any
responsibility or liability for the records relating to or payments made on
account of beneficial ownership interests of the global security for the debt
securities or for maintaining, supervising or reviewing any records relating to
the beneficial ownership interests.
Clear Channel expects that the depositary for a series of debt securities
or its nominee, upon receipt of any payment of principal, premium or interest in
respect of a permanent global security representing any of the debt securities,
will immediately credit participants' accounts with payments in amounts
proportionate to their beneficial interests in the principal amount of the
global security for the debt securities as shown on the records of the
depositary or its nominee. Clear Channel also expects that payments by
participants to owners of beneficial interests in the global security held
through the participants will be governed by standing instructions and customary
practices, as is now the case with securities held for the accounts of customers
in bearer form or registered in "street name." The payments will be the
responsibility of those participants.
If the depositary for a series of debt securities is at any time unwilling,
unable or ineligible to continue as depositary and a successor depositary is not
appointed by Clear Channel within 90 days, Clear Channel will issue individual
debt securities of that series in exchange for the global security representing
that series of debt securities. In addition, Clear Channel may at any time and
in its sole discretion, subject to any limitations described in the prospectus
supplement relating to the debt securities, determine not to have any debt
securities of a series represented by one or more global securities. In that
event, Clear Channel will issue individual debt securities of that series in
exchange for the global security or securities representing that series of debt
securities. Further, if Clear Channel so specifies with respect to the debt
securities of a series, an owner of a beneficial interest in a global security
representing debt securities of that series may, on terms acceptable to Clear
Channel, the applicable debt trustee and the depositary for such global
security, receive individual debt securities of that series in exchange for the
beneficial interests, subject to any limitations described in the prospectus
supplement relating to the debt securities. In any such instance, an owner of a
beneficial interest in a global security will be entitled to physical delivery
of individual debt securities of the series represented by the global security
equal in principal amount to the beneficial interest and to have the debt
securities registered in its name. Individual debt securities of the series so
issued will be issued in denominations, unless otherwise specified by Clear
Channel, of $1,000 and integral multiples of $1,000.
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
Each indenture prohibits Clear Channel's consolidation with or merger into
any other corporation or the transfer of Clear Channel's properties and assets
to any person, unless:
- the successor corporation is organized and existing under the laws of the
United States, any State thereof or the District of Columbia, and
expressly assumes by a supplemental indenture the punctual payment of the
principal of, premium on and interest on, all the outstanding debt
securities and the performance of every covenant in the applicable
indenture to be performed or observed on Clear Channel's part;
- immediately after giving effect to the transaction, no event of default
has happened and is continuing; and
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- Clear Channel has delivered to the applicable debt trustee an officers'
certificate and an opinion of counsel, each stating that the
consolidation, merger, conveyance or transfer and the supplemental
indenture comply with the foregoing provisions relating to the
transaction.
In case of any consolidation, merger, conveyance or transfer, the successor
corporation will succeed to and be substituted for Clear Channel as obligor on
the debt securities, with the same effect as if it had been named as Clear
Channel in the applicable indenture. Unless otherwise specified in a prospectus
supplement, other than the restrictions on Mortgages described below, the
indentures and the debt securities do not contain any covenants or other
provisions designed to protect holders of debt securities in the event of a
highly leveraged transaction involving Clear Channel or any Subsidiary (defined
below).
EVENTS OF DEFAULT; WAIVER AND NOTICE OF DEFAULT; DEBT SECURITIES IN FOREIGN
CURRENCIES
An event of default when used in an indenture will mean any of the
following as to any series of debt securities:
- default for 30 days in payment of any interest, or, in the case of the
subordinated indenture, for a period of 90 days;
- default in payment of principal of or any premium at maturity;
- default in payment of any sinking or purchase fund or similar obligation;
- default by Clear Channel in the performance of any other covenant or
warranty contained in the applicable indenture for the benefit of that
series which has not been remedied for a period of 90 days after notice
is given; or
- events of Clear Channel's bankruptcy, insolvency and reorganization.
A default under Clear Channel's other indebtedness will not be a default
under the indentures and a default under one series of debt securities will not
necessarily be a default under another series.
Each indenture provides that if an event of default described in the first
four bullet points above, if the event of default under the fourth bullet point
is with respect to less than all series of debt securities then outstanding, has
occurred and is continuing with respect to any series, either the applicable
debt trustee or the holders of not less than 25% in aggregate principal amount
of the debt securities of the series then outstanding, each series acting as a
separate class, may declare the principal or, in the case of original issue
discount securities, the portion specified in the terms thereof, of all
outstanding debt securities of the series and the accrued interest to be due and
payable immediately. Each indenture further provides that if an event of default
described in the fourth or fifth bullet points above, if the event of default
under the fourth bullet point is with respect to all series of debt securities
then outstanding, has occurred and is continuing, either the applicable debt
trustee or the holders of at least 25% in aggregate principal amount of all debt
securities then outstanding, treated as one class, may declare the principal or,
in the case of original issue discount securities, the portion specified in the
terms thereof, of all debt securities then outstanding and the accrued interest
to be due and payable immediately. However, upon certain conditions the
declarations may be annulled and past defaults, except for defaults in the
payment of principal of, premium on, or interest on, the debt securities and in
compliance with certain covenants, may be waived by the holders of a majority in
aggregate principal amount of the debt securities of the series then
outstanding.
Under each indenture the applicable debt trustee must give notice to the
holders of each series of debt securities of all uncured defaults known to it
with respect to that series within 90 days after a default occurs. The term
"default" includes the events specified above without notice or grace periods.
However, in the case of any default of the type described in the fourth bullet
point above, no notice may be given until at least 90 days after the occurrence
of the event. The debt trustee will be protected in withholding notice if it in
good faith determines that the withholding of notice is in the interests of the
holders of the debt securities, except in the case of default in the payment of
principal of, premium on, or interest on, any of the debt securities, or default
in the payment of any sinking or purchase fund installment or analogous
obligations.
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No holder of any debt securities of any series may institute any action
under either indenture unless:
- the holder has given the debt trustee written notice of a continuing
event of default with respect to that series;
- the holders of not less than 25% in aggregate principal amount of the
debt securities of the series then outstanding have requested the debt
trustee to institute proceedings in respect of the event of default;
- the holder or holders have offered the debt trustee reasonable indemnity
as the debt trustee may require;
- the debt trustee has failed to institute an action for 60 days; and
- no inconsistent direction has been given to the debt trustee during the
60-day period by the holders of a majority in aggregate principal amount
of debt securities of the series then outstanding.
The holders of a majority in aggregate principal amount of the debt
securities of any series affected and then outstanding will have the right,
subject to limitations, to direct the time, method and place of conducting any
proceeding for any remedy available to the applicable debt trustee or exercising
any trust or power conferred on the debt trustee with respect to a series of
debt securities. Each indenture provides that if an event of default occurs and
is continuing, the debt trustee will be required to use the degree of care of a
prudent person in the conduct of that person's own affairs in exercising its
rights and powers under the indenture. Each indenture further provides that the
debt trustee will not be required to expend or risk its own funds in the
performance of any of its duties under the indenture unless it has reasonable
grounds for believing that repayment of the funds or adequate indemnity against
the risk or liability is reasonably assured to it.
Clear Channel must furnish to the debt trustees within 120 days after the
end of each fiscal year a statement signed by one of its officers to the effect
that a review of its activities during the year and of its performance under the
applicable indenture and the terms of the debt securities has been made, and, to
the best of the knowledge of the signatories based on the review, Clear Channel
has complied with all conditions and covenants of the indenture through the year
or, if Clear Channel is in default, specifying the default.
To determine whether the holders of the requisite principal amount of debt
securities have taken action as described above when the debt securities are
denominated in a foreign currency, the principal amount of the debt securities
will be deemed to be that amount of United States dollars that could be obtained
for the principal amount based on the applicable spot rate of exchange as of the
date the action is taken as evidenced to the debt trustee as provided in the
indenture.
To determine whether the holders of the requisite principal amount of debt
securities have taken action as described above when the debt securities are
original issue discount securities, the principal amount of the debt securities
will be deemed to be the portion of the principal amount that would be due and
payable at the time the action is taken upon a declaration of acceleration of
maturity.
MODIFICATION OF THE INDENTURES
The indentures provide that Clear Channel and the applicable debt trustee
may, without the consent of any holders of debt securities, enter into
supplemental indentures for the purposes, among other things, of
- adding to Clear Channel's covenants;
- adding additional events of default;
- establishing the form or terms of any series of debt securities; or
- curing ambiguities or inconsistencies in the indenture or making other
provisions.
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With specific exceptions, the applicable indenture or the rights of the
holders of the debt securities may be modified by Clear Channel and the
applicable debt trustee with the consent of the holders of a majority in
aggregate principal amount of the debt securities of each series affected by the
modification then outstanding, but no modification may be made without the
consent of the holder of each outstanding debt security affected which would:
- change the maturity of any payment of principal of, or any premium on, or
any installment of interest on any debt security;
- reduce the principal amount of or the interest or any premium on any debt
security;
- change the method of computing the amount of principal of or interest on
any date;
- change any place of payment where, or the currency in which, any debt
security or any premium or interest is payable;
- impair the right to sue for the enforcement of any payment on or after
the maturity thereof, or, in the case of redemption or repayment, on or
after the redemption date or the repayment date;
- reduce the percentage in principal amount of the outstanding debt
securities of any series where the consent of the holders is required for
any modification, or the consent of the holders is required for any
waiver of compliance with provisions of the applicable indenture or
specific defaults and their consequences provided for in the indenture;
or
- modify any of the provisions of specific sections of the applicable
indenture, including the provisions summarized in this section, except to
increase any percentage or to provide that other provisions of the
indenture cannot be modified or waived without the consent of the holder
of each outstanding debt security affected thereby.
SATISFACTION AND DISCHARGE OF THE INDENTURES; DEFEASANCE
The indentures will generally cease to be of any further effect with
respect to a series of debt securities if Clear Channel delivers all debt
securities of that series, with limited exceptions, for cancellation to the
applicable debt trustee or all debt securities of that series not previously
delivered for cancellation to the applicable debt trustee have become due and
payable or will become due and payable or called for redemption within one year,
and Clear Channel has deposited with the applicable debt trustee as trust funds
the entire amount sufficient to pay at maturity or upon redemption all the debt
securities, no default with respect to the debt securities has occurred and is
continuing on the date of the deposit, and the deposit does not result in a
breach or violation of, or default under, the applicable indenture or any other
agreement or instrument to which Clear Channel is a party.
Clear Channel has a "legal defeasance option" under which it may terminate,
with respect to the debt securities of a particular series, all of its
obligations under the debt securities and the applicable indenture. In addition,
Clear Channel has a "covenant defeasance option" under which it may terminate,
with respect to the debt securities of a particular series, Clear Channel's
obligations with respect to the debt securities under specified covenants
contained in the applicable indenture. If Clear Channel exercises its legal
defeasance option with respect to a series of debt securities, payment of the
debt securities may not be accelerated because of an event of default. If Clear
Channel exercises its covenant defeasance option with respect to a series of
debt securities, payment of the debt securities may not be accelerated because
of an event of default related to the specified covenants.
Clear Channel may exercise its legal defeasance option or its covenant
defeasance option with respect to the debt securities of a series only if:
- Clear Channel deposits in trust with the applicable debt trustee cash or
debt obligations of the United States of America or its agencies or
instrumentalities for the payment of principal, premium and interest with
respect to the debt securities to maturity or redemption;
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- Clear Channel delivers to the applicable debt trustee a certificate from
a nationally recognized firm of independent public accountants expressing
their opinion that the payments of principal and interest when due will
provide cash sufficient to pay the principal, premium, and interest when
due with respect to all the debt securities of that series to maturity or
redemption;
- 91 days pass after the deposit is made and during the 91-day period no
default described in the fifth bullet point under "-- Events of Default,
Waiver and Notice Of Default; Debt Securities in Foreign Currencies"
above with respect to Clear Channel occurs that is continuing at the end
of the period;
- no default has occurred and is continuing on the date of the deposit;
- the deposit does not constitute a default under any other agreement
binding on Clear Channel;
- Clear Channel delivers to the applicable debt trustee an opinion of
counsel to the effect that the trust resulting from the deposit does not
constitute a regulated investment company under the Investment Company
Act of 1940;
- Clear Channel has delivered to the applicable debt trustee an opinion of
counsel addressing specific federal income tax matters relating to the
defeasance; and
- Clear Channel delivers to the applicable debt trustee an officers'
certificate and an opinion of counsel stating that all conditions to the
defeasance and discharge of the debt securities of that series have been
complied with.
The applicable debt trustee will hold in trust cash or debt obligations of
the United States of America or its agencies or instrumentalities deposited with
it as described above and will apply the deposited cash and the proceeds from
deposited debt obligations of the United States of America or its agencies or
instrumentalities to the payment of principal, premium, and interest with
respect to the debt securities of the defeased series.
CONCERNING THE DEBT TRUSTEES
Clear Channel will identify the debt trustee for the senior debt securities
and the debt trustee for the subordinated debt securities in the relevant
prospectus supplement. In specific instances, Clear Channel or the holders of a
majority of the then outstanding principal amount of the debt securities issued
under an indenture may remove the debt trustee and appoint a successor debt
trustee. The debt trustee may become the owner or pledgee of any of the debt
securities with the same rights, subject to conflict of interest restrictions,
it would have if it were not the debt trustee. The debt trustee and any
successor trustee must be a corporation organized and doing business as a
commercial bank or trust company under the laws of the United States or of any
state thereof, authorized under those laws to exercise corporate trust powers,
having a combined capital and surplus of at least $50,000,000 and subject to
examination by federal or state authority. Subject to applicable law relating to
conflicts of interest, the debt trustee may also serve as trustee under other
indentures relating to debt securities issued by Clear Channel or its affiliated
companies and may engage in commercial transactions with Clear Channel and its
affiliated companies. The initial debt trustee under each indenture is The Bank
of New York, who currently serves as Clear Channel's transfer agent and
registrar for the common stock and is a lender to Clear Channel under its credit
facilities.
SENIOR DEBT SECURITIES
In addition to the provisions previously described in this prospectus and
applicable to all debt securities, the following description of Clear Channel's
senior debt securities summarizes the general terms and provisions of its senior
debt securities to which any prospectus supplement may relate. Clear Channel
will describe the specific terms of the senior debt securities offered by any
prospectus supplement and the extent, if any, to which the general provisions
summarized below may apply to any series of its senior debt securities in the
prospectus supplement relating to that series.
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Ranking of Senior Debt Securities
Unless we specify otherwise in a prospectus supplement for a particular
series of debt securities, all series of senior debt securities will be Clear
Channel's senior indebtedness and will be direct, unsecured obligations of Clear
Channel ranking equally with all of Clear Channel's other unsecured and
unsubordinated indebtedness. Because Clear Channel is a holding company, the
debt securities will be effectively subordinated to all existing and future
liabilities, including indebtedness, of Clear Channel's subsidiaries. See
"Holding Company Structure."
Covenants
The senior indenture contains the covenants summarized below, which will be
applicable, unless waived or amended, so long as any of the senior debt
securities are outstanding, unless stated otherwise in the prospectus
supplement.
Limitation on Mortgages. Clear Channel will not, nor will it permit any
Restricted Subsidiary to create, assume or incur
- any Mortgage on any stock or indebtedness of any Restricted Subsidiary to
secure any Debt of Clear Channel or any other person, other than the
senior debt securities; or
- any Mortgage on any Principal Property to secure any Debt of Clear
Channel or any other person, other than the senior debt securities,
without making provision for all the outstanding senior debt securities to be
secured equally with the Debt.
Any Mortgage on stock or indebtedness of a corporation existing at the time
a corporation becomes a Subsidiary or at the time stock or indebtedness of a
Subsidiary is acquired, and, with specific exceptions, any extension, renewal or
replacement of any Mortgage, will generally be excluded from this restriction.
The following permitted mortgages will be excluded from the restriction
referred to in the preceding paragraph:
- any Mortgage on property owned or leased by a corporation existing at the
time the corporation becomes a Restricted Subsidiary;
- any Mortgage on property existing at the time of its acquisition or to
secure payment of any part of the purchase price thereof or any Debt
incurred to finance the purchase thereof;
- any Mortgage on property to secure any part of the cost of development,
construction, alteration, repair or improvement of the property, or Debt
incurred to finance the cost;
- any Mortgage securing Debt of a Restricted Subsidiary owing to Clear
Channel or to another Restricted Subsidiary;
- any Mortgage existing on the date of the senior indenture;
- any Mortgage on Clear Channel's property or property of a Restricted
Subsidiary in favor of the United States of America or any State or
political subdivision thereof, or in favor of any other country or any
political subdivision thereof, to secure payment pursuant to any contract
or statute or to secure any indebtedness incurred for the purpose of
financing all or part of the purchase price or the cost of construction
or improvement of the property subject to the Mortgage;
- any Mortgage on any property subsequently acquired by Clear Channel or
any Restricted Subsidiary, concurrently with the acquisition or within
120 days, to secure or provide for the payment of any part of the
purchase price of the property, or any Mortgage assumed by Clear Channel
or any Restricted Subsidiary on any property subsequently acquired by
Clear Channel or any Restricted Subsidiary which was existing at the time
of the acquisition, provided that the amount of any Indebtedness secured
by any Mortgage created or assumed does not exceed the cost to Clear
Channel or any Restricted Subsidiary of the property covered by the
Mortgage; and
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- any extension, renewal or replacement of any Mortgage referred to in the
previous seven bullet points, provided that the principal amount of Debt
secured thereby may not exceed the principal amount of Debt so secured at
the time of the extension, renewal or replacement, and provided that the
Mortgage must be limited to all or part of the property which secured the
Mortgage so extended, renewed or replaced.
Notwithstanding the above, Clear Channel may, and may permit any Restricted
Subsidiary to, create, assume or incur any Mortgage on any Principal Property
without equally securing the senior debt securities if the aggregate amount of
all Debt then outstanding secured by the Mortgage and all similar Mortgages does
not exceed 15% of Clear Channel's total consolidated shareholders' equity,
including preferred stock, as shown on the audited consolidated balance sheet
contained in its latest annual report to shareholders. However, Debt secured by
Permitted Mortgages will not be included in the amount of the secured Debt.
Sale and Leaseback Transactions. Clear Channel will not, nor will it permit
any Restricted Subsidiary to, enter into any sale-leaseback transaction
providing for the leasing by Clear Channel or a Restricted Subsidiary of any
Principal Property, except for temporary leases for a term of not more than
three years, which has been or is to be sold or transferred by Clear Channel or
the Restricted Subsidiary to the person, unless:
- the sale-leaseback transaction occurs within the later of 120 days from
the date of acquisition of the Principal Property or the date of the
completion of construction or commencement of full operations on the
Principal Property, or
- within 120 days after the sale-leaseback transaction, Clear Channel
applies or causes to be applied to the retirement of its Funded Debt or
the Funded Debt of any Subsidiary, other than its Funded Debt which is
subordinate in right of payment to the senior debt securities, an amount
not less than the net proceeds of the sale of the Principal Property.
Notwithstanding the above provisions, Clear Channel may, and may permit any
Restricted Subsidiary to, effect any sale-leaseback transaction involving any
Principal Property, provided that the net sale proceeds from the sale-leaseback
transaction, together with all Debt secured by Mortgages other than Permitted
Mortgages, does not exceed 15% of Clear Channel's total consolidated
shareholders' equity as shown on the audited consolidated balance sheet
contained in Clear Channel's latest annual report to shareholders.
Definitions
For the purposes of the description of the senior debt securities:
"Debt" means indebtedness for money borrowed.
"Funded Debt" of any person means all indebtedness for borrowed money
created, incurred, assumed or guaranteed in any manner by the person, and all
indebtedness incurred or assumed by the person in connection with the
acquisition of any business, property or asset, which in each case matures more
than one year after, or which is renewable or extendible or payable out of the
proceeds of similar indebtedness incurred pursuant to the terms of any revolving
credit agreement or any similar agreement at the option of the person for a
period ending more than one year after the date as of which Funded Debt is being
determined. However, Funded Debt does not include:
- any indebtedness for the payment, redemption or satisfaction of which
money, or evidences of indebtedness, if permitted under the instrument
creating or evidencing the indebtedness, in the necessary amount has been
irrevocably deposited in trust with a trustee or proper depository either
on or before the maturity or redemption date thereof;
- any indebtedness of the person to any of its Subsidiaries or of any
Subsidiary to the person or any other Subsidiary; or
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- any indebtedness incurred in connection with the financing of operating,
construction or acquisition projects, provided that the recourse for the
indebtedness is limited to the assets of the projects.
"Mortgage" means any mortgage, pledge, lien, encumbrance, charge or
security interest of any kind.
"Principal Property" means any radio broadcasting, television broadcasting
or outdoor advertising property located in the United States owned or leased by
Clear Channel or any of its subsidiaries, unless, in the opinion of Clear
Channel's Board of Directors, any of the properties are not in the aggregate of
material importance to the total business conducted by Clear Channel and its
Subsidiaries as an entirety.
"Restricted Subsidiary" means each Subsidiary as of the date of the
indenture and each Subsidiary created or acquired after the date of the
indenture, unless expressly excluded by resolution of Clear Channel's Board of
Directors before, or within 120 days following, the creation or acquisition.
"Subsidiary", when used with respect to Clear Channel, means any
corporation of which a majority of the outstanding voting stock is owned,
directly or indirectly, by Clear Channel or by one or more other Subsidiaries,
or both.
SUBORDINATED DEBT SECURITIES
In addition to the provisions previously described in this prospectus and
applicable to all debt securities, the following description of Clear Channel's
subordinated debt securities summarizes the general terms and provisions of its
subordinated debt securities to which any prospectus supplement may relate. We
will describe the specific terms of Clear Channel's subordinated debt securities
offered by any prospectus supplement and the extent, if any, to which the
general provisions summarized below may apply to any series of subordinated debt
securities in the prospectus supplement relating to that series.
Ranking of Subordinated Debt Securities
The subordinated debt securities will be subordinated in right of payment
to Clear Channel's other indebtedness to the extent set forth in the applicable
prospectus supplement.
The payment of the principal of, premium, if any, and interest on the
subordinated debt securities will be subordinated in right of payment to the
prior payment in full of all of Clear Channel's senior indebtedness and equally
with its trade creditors. Clear Channel may not make payment of principal of,
premium, if any, or interest on the subordinated debt securities and may not
acquire or make payment on account of any sinking fund for, the subordinated
debt securities unless full payment of amounts then due for principal, premium,
if any, and interest then due on all senior indebtedness by reason of the
maturity thereof has been made or duly provided for in cash or in a manner
satisfactory to the holders of the senior indebtedness. In addition, the
subordinated indenture provides that if a default has occurred giving the
holders of the senior indebtedness the right to accelerate the maturity of that
senior indebtedness, or an event has occurred which, with the giving of notice,
or lapse of time, or both, would constitute an event of default, then unless and
until that event has been cured or waived or has ceased to exist, no payment of
principal, premium, if any, or interest on the subordinated debt securities and
no acquisition of, or payment on account of a sinking fund for, the subordinated
debt securities may be made. Clear Channel will give prompt written notice to
the subordinated trustee of any default under any senior indebtedness or under
any agreement pursuant to which senior indebtedness may have been issued. The
subordinated indenture provisions described in this paragraph, however, do not
prevent Clear Channel from making a sinking fund payment with subordinated debt
securities acquired prior to the maturity of senior indebtedness or, in the case
of default, prior to the default and notice thereof. Upon any distribution of
assets in connection with Clear Channel's dissolution, liquidation or
reorganization, all senior indebtedness must be paid in full before the holders
of the subordinated debt securities are entitled to any payments whatsoever. As
a result of these subordination provisions, in the event of Clear Channel's
insolvency, holders of the subordinated debt securities may recover ratably less
than Clear Channel's senior creditors.
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For purposes of the description of the subordinated debt securities, the
term "senior indebtedness" means the principal of and premium, if any, and
interest on the following, whether outstanding on the date of execution of the
subordinated indenture or incurred or created after the execution:
- Clear Channel's indebtedness for money borrowed by it, including purchase
money obligations with an original maturity in excess of one year, or
evidenced by securities, other than the subordinated debt securities or
junior subordinated debt securities, notes, bankers' acceptances or other
corporate debt securities or similar instruments issued by Clear Channel;
- obligations with respect to letters of credit;
- Clear Channel's indebtedness constituting a guarantee of indebtedness of
others of the type referred to in the preceding two bullet points; or
- renewals, extensions or refundings of any of the indebtedness referred to
in the preceding three bullet points unless, in the case of any
particular indebtedness, renewal, extension or refunding, under the
express provisions of the instrument creating or evidencing the same, or
pursuant to which the same is outstanding, the indebtedness or the
renewal, extension or refunding thereof is not superior in right of
payment to the subordinated debt securities.
DESCRIPTION OF JUNIOR SUBORDINATED DEBT SECURITIES
The following description of Clear Channel's junior subordinated debt
securities summarizes the general terms and provisions of its junior
subordinated debt securities to which any prospectus supplement may relate.
Clear Channel will describe the specific terms of the junior subordinated debt
securities and the extent, if any, to which the general provisions summarized
below may apply to any series of its junior subordinated debt securities in the
prospectus supplement relating to that series.
Clear Channel may issue its junior subordinated debt securities from time
to time, in one or more series under a junior subordinated indenture, between
Clear Channel and The Bank of New York, as junior subordinated trustee, or
another junior subordinated trustee named in a prospectus supplement. The junior
subordinated indenture is governed by New York law. The form of junior
subordinated indenture is filed as an exhibit to the registration statement.
GENERAL
The junior subordinated debt securities will be unsecured, junior
subordinated obligations of Clear Channel. The junior subordinated indenture
does not limit the amount of additional indebtedness Clear Channel or any of its
subsidiaries may incur. Since Clear Channel is a holding company, Clear
Channel's rights and the rights of its creditors, including the holders of
junior subordinated debt securities, to participate in the assets of any
subsidiary upon the latter's liquidation or recapitalization will be subject to
the prior claims of the subsidiary's creditors, except to the extent that Clear
Channel may itself be a creditor with recognized claims against the subsidiary.
The junior subordinated indenture does not limit the aggregate principal
amount of indebtedness which may be issued thereunder and provides that junior
subordinated debt securities may be issued thereunder from time to time in one
or more series. The junior subordinated debt securities are issuable in one or
more series pursuant to a board resolution or an indenture supplemental to the
junior subordinated indenture. Clear Channel will issue junior subordinated debt
securities from time to time and offer its junior subordinated debt securities
on terms determined by market conditions at the time of sale.
In the event junior subordinated debt securities are issued to a Clear
Channel Trust or a trustee of a Clear Channel Trust in connection with the
issuance of preferred securities by that Clear Channel Trust, the junior
subordinated debt securities subsequently may be distributed pro rata to the
holders of the preferred securities in connection with the dissolution of the
Clear Channel Trust upon the occurrence of the events described in the
applicable prospectus supplement. Only one series of junior subordinated debt
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securities will be issued to a Clear Channel Trust or a trustee of a Clear
Channel Trust in connection with the issuance of preferred securities by that
Clear Channel Trust.
You should refer to the applicable prospectus supplement for the following
terms of the junior subordinated debt securities offered hereby:
- the designation, aggregate principal amount and authorized denominations
of the junior subordinated debt securities;
- any limit on the aggregate principal amount of the junior subordinated
debt securities;
- the date or dates on which the junior subordinated debt securities will
mature;
- the annual interest rate or rates of the junior subordinated debt
securities, or the method of determining the rate or rates;
- the date or dates on which any interest will be payable, the date or
dates on which payment of any interest will commence and the regular
record dates for the interest payment dates;
- the terms of any mandatory or optional redemption, including any
provisions for any sinking, purchase or other similar funds or repayment
options;
- the currency, currencies or currency units for which the junior
subordinated debt securities may be purchased and the currency,
currencies or currency units in which the principal, any premium and any
interest may be payable;
- if the currency, currencies or currency units for which the junior
subordinated debt securities may be purchased or in which the principal,
any premium and any interest may be payable is at Clear Channel's
election or the purchaser's election, the manner in which the election
may be made;
- if the amount of payments on the junior subordinated debt securities is
determined by an index based on one or more currencies or currency units,
changes in the price of one or more securities or changes in the price of
one or more commodities, the manner in which the amounts may be
determined;
- the extent to which any of the junior subordinated debt securities will
be issuable in temporary or permanent global form, or the manner in which
any interest payable on a temporary or permanent global security will be
paid;
- the terms and conditions upon which the junior subordinated debt
securities may be convertible into or exchanged for common stock,
preferred stock, or indebtedness or other securities included in this
document;
- information with respect to book-entry procedures, if any;
- a discussion of the federal income tax, accounting and other special
considerations, procedures and limitations with respect to the junior
subordinated debt securities; and
- any other specific terms of the junior subordinated debt securities not
inconsistent with the junior subordinated indenture.
If Clear Channel sells any of the junior subordinated debt securities for
one or more foreign currencies or foreign currency units or if the principal of,
premium, if any, or interest on any series of junior subordinated debt
securities will be payable in one or more foreign currencies or foreign currency
units, we will describe the restrictions, elections, federal income tax
consequences, specific terms and other information with respect to the issue of
junior subordinated debt securities and the currencies or currency units in the
applicable prospectus supplement.
Unless specified otherwise in the prospectus supplement, the principal of,
premium on, and interest on the junior subordinated debt securities will be
payable, and the junior subordinated debt securities will be transferable, at
the Corporate Trust Office of the junior subordinated indenture trustee in New
York,
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New York. However, Clear Channel may make payment of interest at its option by
check mailed on or before the payment date to the address of the person entitled
to the interest payment as it appears on the registry books of Clear Channel or
its agents.
Unless specified otherwise in the prospectus supplement, Clear Channel will
issue the junior subordinated debt securities only in fully registered form and
in denominations of $1,000 and any integral multiple of $1,000. No service
charge will be made for any transfer or exchange of any junior subordinated debt
securities, but Clear Channel may, except in specific cases not involving any
transfer, require payment of a sufficient amount to cover any tax or other
governmental charge payable in connection with the transfer or exchange. Unless
specified otherwise in the prospectus supplement, Clear Channel will pay
interest on outstanding junior subordinated debt securities to holders of record
on the date 15 days immediately prior to the date the interest is to be paid.
GLOBAL SECURITIES
Clear Channel may issue junior subordinated debt securities of a series in
whole or in part in the form of one or more global securities that will be
deposited with or on behalf of a depositary identified in the prospectus
supplement relating to that series. Clear Channel may issue global securities
only in fully registered form and in either temporary or permanent form. Unless
and until it is exchanged in whole or in part for the individual junior
subordinated debt securities represented thereby, a global security may not be
transferred except as a whole by the depositary for the global security to a
nominee of the depositary or by a nominee of the depositary to the depositary or
another nominee of the depositary or by the depositary or any nominee of the
depositary to a successor or any nominee.
The specific terms of the depositary arrangement relating to a series of
junior subordinated debt securities will be described in the prospectus
supplement relating to that series.
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
The junior subordinated indenture prohibits Clear Channel's consolidation
with or merger into any other corporation or the transfer of its properties and
assets to any person, unless:
- the successor corporation is organized and existing under the laws of the
United States, any State thereof or the District of Columbia, and
expressly assumes by a supplemental indenture the punctual payment of the
principal of, premium on and interest on, all the outstanding junior
subordinated debt securities and the performance of every covenant in the
junior subordinated indenture to be performed or observed on Clear
Channel's part;
- immediately after giving effect to the transaction, no event of default
has happened and is continuing; and
- Clear Channel has delivered to the junior subordinated indenture trustee
an officers' certificate and an opinion of counsel, each stating that the
consolidation, merger, conveyance or transfer and the supplemental
indenture comply with the foregoing provisions relating to the
transaction.
In case of any consolidation, merger, conveyance or transfer, the successor
corporation will succeed to and be substituted for Clear Channel as obligor on
the junior subordinated debt securities, with the same effect as if it had been
named as Clear Channel in the junior subordinated indenture. Other than the
restrictions on Mortgages described below, the junior subordinated indenture and
the junior subordinated debt securities do not contain any covenants or other
provisions designed to protect holders of junior subordinated debt securities in
the event of a highly leveraged transaction involving Clear Channel or any
Subsidiary.
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EVENTS OF DEFAULT; WAIVER AND NOTICE OF DEFAULT; JUNIOR SUBORDINATED DEBT
SECURITIES IN FOREIGN CURRENCIES
An event of default when used in a junior subordinated indenture will mean
any of the following as to any series of junior subordinated debt securities:
- default for 90 days in payment of any interest on the junior subordinated
debt securities;
- default in payment of principal or any premium at maturity;
- default in payment of any sinking or purchase fund or similar obligation;
- default by Clear Channel in the performance of any other covenant or
warranty contained in the junior subordinated indenture for the benefit
of that series which has not been remedied for a period of 90 days after
notice is given; or
- events of Clear Channel's bankruptcy, insolvency and reorganization.
A default under Clear Channel's other indebtedness will not be a default
under the junior subordinated indenture and a default under one series of junior
subordinated debt securities will not necessarily be a default under another
series.
The junior subordinated indenture provides that if an event of default
described in the first four bullet points above, if the event of default under
the fourth bullet point is with respect to less than all series of junior
subordinated debt securities then outstanding, has occurred and is continuing
with respect to any series, either the junior subordinated indenture trustee or
the holders of not less than 25% in aggregate principal amount of the junior
subordinated debt securities of the series then outstanding, each series acting
as a separate class, may declare the principal or, in the case of original issue
discount securities, the portion specified in the terms thereof, of all
outstanding junior subordinated debt securities of that series and the accrued
interest to be due and payable immediately. The junior subordinated indenture
further provides that if an event of default described in the fourth or fifth
bullet points above, if the event of default under the fourth bullet point is
with respect to all series of junior subordinated debt securities then
outstanding, has occurred and is continuing, either the junior subordinated debt
trustee or the holders of at least 25% in aggregate principal amount of all
junior subordinated debt securities then outstanding, treated as one class, may
declare the principal or, in the case of original issue discount securities, the
portion specified in the terms thereof, of all junior subordinated debt
securities then outstanding and the accrued interest to be due and payable
immediately. However, upon certain conditions the declarations may be annulled
and past defaults, except for defaults in the payment of principal of, premium
on, or interest on, the junior subordinated debt securities and in compliance
with certain covenants, may be waived by the holders of a majority in aggregate
principal amount of the junior subordinated debt securities of that series then
outstanding, subject to the consent of the holders of the preferred securities
and the common securities of any Clear Channel Trust as required by it
declaration of trust in the event that the junior subordinated debt securities
are held as assets of the Clear Channel Trust prior to a security exchange.
When used with respect to the junior subordinated debt securities which are
held as trust assets of a Clear Channel Trust pursuant to the declaration of
trust of the Clear Channel Trust, the term security exchange means the
distribution of the junior subordinated debt securities held by the Clear
Channel Trust in exchange for the preferred securities and the common securities
of the Clear Channel Trust in dissolution of the Clear Channel Trust pursuant to
the declaration of trust of the Clear Channel Trust.
Under the junior subordinated indenture the junior subordinated indenture
trustee must give notice to the holders of each series of junior subordinated
debt securities of all uncured defaults known to it with respect to that series
within 90 days after a default occurs. The term "default" includes the events
specified above without notice or grace periods. However, in the case of any
default of the type described in the fourth bullet point above, no notice may be
given until at least 90 days after the occurrence of the event. The junior
subordinated debt trustee will be protected in withholding notice if it in good
faith determines that the withholding of notice is in the interests of the
holders of the junior subordinated debt securities, except in the case of
default in the payment of principal of, premium on, or interest on, any of
21
the junior subordinated debt securities, or default in the payment of any
sinking or purchase fund installment or analogous obligations.
No holder of any junior subordinated debt securities of any series may
institute any action under either indenture unless:
- the holder has given the junior subordinated indenture trustee written
notice of a continuing event of default with respect to that series;
- the holders of not less than 25% in aggregate principal amount of the
junior subordinated debt securities of that series then outstanding have
requested the junior subordinated indenture trustee to institute
proceedings in respect of the event of default;
- the holder or holders have offered the junior subordinated indenture
trustee reasonable indemnity as the trustee may require;
- the junior subordinated indenture trustee has failed to institute an
action for 60 days after the notice, request and indemnity have been made
as described above; and
- no inconsistent direction has been given to the junior subordinated
indenture trustee during the 60-day period by the holders of a majority
in aggregate principal amount of junior subordinated debt securities of
the series then outstanding, subject to the consent of the holders of the
preferred securities and the common securities of any Clear Channel Trust
as required by it declaration of trust in the event that the junior
subordinated debt securities are held as assets of the Clear Channel
Trust prior to a security exchange.
The holders of a majority in aggregate principal amount of the junior
subordinated debt securities of any series affected and then outstanding,
subject to the consent of the holders of the preferred securities and the common
securities of any Clear Channel Trust as required by its declaration of trust in
the event that the junior subordinated debt securities are held as assets of the
Clear Channel Trust prior to a security exchange, will have the right, subject
to limitations, to direct the time, method and place of conducting any
proceeding for any remedy available to the junior subordinated indenture trustee
or exercising any trust or power conferred on the junior subordinated indenture
trustee with respect to the series of junior subordinated debt securities. The
junior subordinated indenture provides that if an event of default occurs and is
continuing, the junior subordinated indenture trustee will be required to use
the degree of care of a prudent person in the conduct of the person's own
affairs in exercising its rights and powers under the indenture. The junior
subordinated indenture further provides that the junior subordinated indenture
trustee will not be required to expend or risk its own funds in the performance
of any of its duties under the indenture unless it has reasonable grounds for
believing that repayment of the funds or adequate indemnity against the risk or
liability is reasonably assured to it.
Clear Channel must furnish to the junior subordinated indenture trustees
within 120 days after the end of each fiscal year a statement signed by one of
its officers to the effect that a review of its activities during the year and
of its performance under the junior subordinated indenture and the terms of the
junior subordinated debt securities has been made, and, to the best of the
knowledge of the signatories based on the review, Clear Channel has complied
with all conditions and covenants of the indenture through the year or, if Clear
Channel is in default, specifying the default.
If any junior subordinated debt securities are denominated in a currency
other than that of the United States, then for the purposes of determining
whether the holders of the requisite principal amount of junior subordinated
debt securities have taken any action as described in this prospectus, the
principal amount of the junior subordinated debt securities will be deemed to be
that amount of United States dollars that could be obtained for the principal
amount on the basis of the spot rate of exchange into United States dollars for
the currency in which the junior subordinated debt securities are denominated as
of the date the taking of the action by the holders of the requisite principal
amount is evidenced to the junior subordinated indenture trustee as provided in
the junior subordinated indenture.
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If any junior subordinated debt securities are original issue discount
securities, then for the purposes of determining whether the holders of the
requisite principal amount of junior subordinated debt securities have taken any
action described in this prospectus, the principal amount of the junior
subordinated debt securities will be deemed to be the portion of the principal
amount that would be due and payable at the time of the taking of the action
upon a declaration of acceleration of maturity thereof.
MODIFICATION OF THE JUNIOR SUBORDINATED INDENTURE
The junior subordinated indenture provides that Clear Channel and the
junior subordinated indenture trustee may, without the consent of any holders of
junior subordinated debt securities, enter into supplemental indentures for the
purposes, among other things, of adding to Clear Channel's covenants, adding
additional events of default, establishing the form or terms of any series of
junior subordinated debt securities or curing ambiguities or inconsistencies in
the indenture or making other provisions.
With specific exceptions, the junior subordinated indenture or the rights
of the holders of the junior subordinated debt securities may be modified by
Clear Channel and the junior subordinated indenture trustee with the consent of
the holders of a majority in aggregate principal amount of the junior
subordinated debt securities of each series affected by the modification then
outstanding, subject to the consent of the holders of the preferred securities
and the common securities of any Clear Channel Trust as required by its
declaration of trust in the event that the junior subordinated debt securities
are held as assets of the Clear Channel Trust prior to a security exchange, but
no modification may be made without the consent of the holder of each
outstanding junior subordinated debt security affected, subject to the consent
of the holders of the preferred securities and the common securities of any
Clear Channel Trust as required by its declaration of trust in the event that
the junior subordinated debt securities are held as assets of the Clear Channel
Trust prior to a security exchange, which would:
- change the maturity of any payment of principal of, or any premium on, or
any installment of interest on any junior subordinated debt security;
- reduce the principal amount of or the interest or any premium on any
junior subordinated debt security;
- change the method of computing the amount of principal of or interest on
any date;
- change any place of payment where, or the currency in which, any junior
subordinated debt security or any premium or interest is payable;
- impair the right to sue for the enforcement of any payment on or after
the maturity thereof or, in the case of redemption or repayment, on or
after the redemption date or the repayment date;
- reduce the percentage in principal amount of the outstanding junior
subordinated debt securities of any series where the consent of the
holders is required for any modification, or the consent of the holders
is required for any waiver of compliance with the provisions of the
junior subordinated indenture or specific defaults and their consequences
provided for in the indenture; or
- modify any of the provisions of specific sections of the junior
subordinated indenture, including the provisions summarized in this
section, except to increase any percentage or to provide that other
provisions of the indenture cannot be modified or waived without the
consent of the holder of each outstanding debt security affected thereby.
SATISFACTION AND DISCHARGE OF THE JUNIOR SUBORDINATED INDENTURE; DEFEASANCE
The junior subordinated indenture will generally cease to be of any further
effect with respect to a series of junior subordinated debt securities if Clear
Channel delivers all junior subordinated debt securities of that series, with
limited exceptions, for cancellation to the junior subordinated indenture
trustee or all junior subordinated debt securities of that series not previously
delivered for cancellation to the junior subordinated indenture trustee have
become due and payable or will become due and payable or called for redemption
within one year, and Clear Channel has deposited with the junior subordinated
indenture
23
trustee as trust funds the entire amount sufficient to pay at maturity or upon
redemption all the junior subordinated debt securities, no default with respect
to the junior subordinated debt securities has occurred and is continuing on the
date of the deposit, and the deposit does not result in a breach or violation
of, or default under, the junior subordinated indenture or any other agreement
or instrument to which Clear Channel is a party.
Clear Channel has a "legal defeasance option" under which it may terminate,
with respect to the junior subordinated debt securities of a particular series,
all of its obligations under the junior subordinated debt securities and the
junior subordinated indenture. In addition, Clear Channel has a "covenant
defeasance option" under which it may terminate, with respect to the junior
subordinated debt securities of a particular series, its obligations with
respect to the junior subordinated debt securities under specified covenants
contained in the junior subordinated indenture. If Clear Channel exercises its
legal defeasance option with respect to a series of junior subordinated debt
securities, payment of the junior subordinated debt securities may not be
accelerated because of an event of default. If Clear Channel exercises its
covenant defeasance option with respect to a series of junior subordinated debt
securities, payment of the junior subordinated debt securities may not be
accelerated because of an event of default related to the specified covenants.
Clear Channel may exercise its legal defeasance option or its covenant
defeasance option with respect to the junior subordinated debt securities of a
series only if:
- Clear Channel deposits in trust with the junior subordinated indenture
trustee cash or debt obligations of the United States of America or its
agencies or instrumentalities for the payment of principal, premium and
interest with respect to the junior subordinated debt securities to
maturity or redemption;
- Clear Channel delivers to the junior subordinated indenture trustee a
certificate from a nationally recognized firm of independent public
accountants expressing their opinion that the payments of principal and
interest when due will provide cash sufficient to pay the principal,
premium, and interest when due with respect to all the junior
subordinated debt securities of that series to maturity or redemption;
- 91 days pass after the deposit is made and during the 91-day period no
default described in the fifth bullet point under "-- Events of Default,
Waiver and Notice of Default; Junior Subordinated Debt Securities in
Foreign Currencies" above with respect to Clear Channel occurs that is
continuing at the end of the period;
- no default has occurred and is continuing on the date of the deposit;
- the deposit does not constitute a default under any other agreement
binding on Clear Channel;
- Clear Channel delivers to the junior subordinated indenture trustee an
opinion of counsel to the effect that the trust resulting from the
deposit does not constitute a regulated investment company under the
Investment Company Act of 1940;
- Clear Channel has delivered to the junior subordinated indenture trustee
an opinion of counsel addressing specific federal income tax matters
relating to the defeasance; and
- Clear Channel delivers to the junior subordinated indenture trustee an
officers' certificate and an opinion of counsel stating that all
conditions to the defeasance and discharge of the junior subordinated
debt securities of that series have been complied with.
The junior subordinated indenture trustee will hold in trust cash or debt
obligations of the United States of America or its agencies or instrumentalities
deposited with it as described above and will apply the deposited cash and the
proceeds from deposited debt obligations of the United States of America or its
agencies or instrumentalities to the payment of principal, premium, and interest
with respect to the junior subordinated debt securities of the defeased series.
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CONCERNING THE JUNIOR SUBORDINATED INDENTURE TRUSTEE
The junior subordinated indenture trustee for the junior subordinated debt
securities will be identified in the relevant prospectus supplement. In specific
instances, Clear Channel or the holders of a majority of the then outstanding
principal amount of the junior subordinated debt securities issued under an
indenture may remove the junior subordinated indenture trustee and appoint a
successor junior subordinated indenture trustee. The junior subordinated
indenture trustee may become the owner or pledgee of any of the junior
subordinated debt securities with the same rights, subject to conflict of
interest restrictions, it would have if it were not the junior subordinated
indenture trustee. The junior subordinated indenture trustee and any successor
trustee must be a corporation organized and doing business as a commercial bank
or trust company under the laws of the United States or of any state thereof,
authorized under those laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000 and subject to examination
by federal or state authority. Subject to applicable law relating to conflicts
of interest, the junior subordinated indenture trustee may also serve as trustee
under other indentures relating to debt securities or junior subordinated debt
securities issued by Clear Channel or its affiliated companies and may engage in
commercial transactions with Clear Channel and its affiliated companies. The
initial junior subordinated indenture trustee under the junior subordinated
indenture is The Bank of New York, who currently serves as Clear Channel's
transfer agent and registrar for the common stock and is a lender to Clear
Channel under its credit facilities.
CERTAIN COVENANTS OF CLEAR CHANNEL APPLICABLE TO THE JUNIOR SUBORDINATED DEBT
SECURITIES
If junior subordinated debt securities are issued to a Clear Channel Trust
in connection with the issuance of preferred securities by the Clear Channel
Trust, Clear Channel covenants in the junior subordinated indenture that, so
long as the preferred securities of the Clear Channel Trust remain outstanding,
Clear Channel will not declare or pay any dividends on, or redeem, purchase,
acquire or make a distribution or liquidation payment with respect to, any
common stock or preferred stock or make any guarantee payments with respect
thereto if at the time
- Clear Channel is in default with respect to its guarantee payments or
other payment obligations under the related guarantee;
- an event of default with respect to the junior subordinated debt
securities has occurred; or
- in the event that junior subordinated debt securities are issued to the
applicable Clear Channel Trust in connection with the issuance of
preferred securities by the Clear Channel Trust, Clear Channel has given
notice of its election to defer payments of interest on the junior
subordinated debt securities by extending the interest payment period as
provided in the terms of the junior subordinated debt securities and the
period, or any extension thereof, is continuing.
However, the foregoing restrictions will not apply to
- dividends, redemptions, purchases, acquisitions, distributions or
payments made by Clear Channel by way of issuance of shares of its
capital stock;
- any declaration of a dividend under a shareholder rights plan or in
connection with the implementation of a shareholder rights plan, the
issuance of Clear Channel's capital stock under a shareholder rights plan
or the redemption or repurchase of any right distributed pursuant to a
shareholder rights plan;
- payments of accrued dividends by Clear Channel upon the redemption,
exchange or conversion of any preferred stock as may be outstanding from
time to time in accordance with the terms of the preferred stock;
- cash payments made by Clear Channel in lieu of delivering fractional
shares upon the redemption, exchange or conversion of any preferred stock
as may be outstanding from time to time in accordance with the terms of
the preferred stock;
25
- payments under the guarantees; or
- purchases of common stock related to the issuance of common stock or
rights under any of Clear Channel's benefit plans for its directors,
officers or employees, or related to the issuance of common stock or
rights under a dividend reinvestment and stock purchase plan.
In addition, if junior subordinated debt securities are issued to a Clear
Channel Trust in connection with the issuance of preferred securities by the
Clear Channel Trust, for so long as the preferred securities of the Clear
Channel Trust remain outstanding, Clear Channel has agreed
- to remain the sole direct or indirect owner of all the outstanding common
securities issued by the Clear Channel Trust and not to cause or permit
the common securities to be transferred except to the extent permitted by
the declaration of the Clear Channel Trust; provided that any of Clear
Channel's permitted successors under the junior subordinated indenture
may succeed to its ownership of the common securities;
- to comply fully with all its obligations and agreements under the
declaration; and
- not to take any action which would cause the Clear Channel Trust to cease
to be treated as a grantor trust for federal income tax purposes, except
in connection with a distribution of junior subordinated debt securities.
SUBORDINATION
The junior subordinated debt securities will be subordinated and junior in
right of payment to Clear Channel's other indebtedness to the extent set forth
in the applicable prospectus supplement.
The payment of the principal of, premium, if any, and interest on the
junior subordinated debt securities will be subordinated in right of payment to
the prior payment in full of all of Clear Channel's senior indebtedness and will
rank equally with its trade creditors. No payment on account of principal of,
premium, if any, or interest on the junior subordinated debt securities and no
acquisition of, or payment on account of any sinking fund for, the junior
subordinated debt securities may be made unless full payment of amounts then due
for principal, premium, if any, and interest then due on all senior indebtedness
by reason of the maturity thereof, by lapse of time, acceleration or otherwise,
has been made or duly provided for in cash or in a manner satisfactory to the
holders of the senior indebtedness. In addition, the junior subordinated
indenture provides that if a default has occurred giving the holders of the
senior indebtedness the right to accelerate the maturity thereof, or an event
has occurred which, with the giving of notice, or lapse of time, or both, would
constitute an event of default, then unless and until that event has been cured
or waived or has ceased to exist, no payment on account of principal, premium,
if any, or interest on the junior subordinated debt securities and no
acquisition of, or payment on account of a sinking fund for, the junior
subordinated debt securities may be made. Clear Channel will give prompt written
notice to the junior subordinated indenture trustee of any default under any
senior indebtedness or under any agreement pursuant to which senior indebtedness
may have been issued. The junior subordinated indenture provisions described in
this paragraph, however, do not prevent Clear Channel from making a sinking fund
payment with junior subordinated debt securities acquired prior to the maturity
of senior indebtedness or, in the case of default, prior to the default and
notice thereof. Upon any distribution of Clear Channel's assets in connection
with its dissolution, liquidation or reorganization, all senior indebtedness
must be paid in full before the holders of the junior subordinated debt
securities are entitled to any payments whatsoever. As a result of these
subordination provisions, in the event of Clear Channel's insolvency, holders of
the junior subordinated debt securities may recover ratably less than Clear
Channel's senior creditors.
For purposes of the description of the junior subordinated debt securities,
the term senior indebtedness means the principal of and premium, if any, and
interest on the following, whether outstanding on the date of execution of the
junior subordinated indenture or incurred or created after the execution
- Clear Channel's indebtedness for money borrowed by it, including purchase
money obligations with an original maturity in excess of one year, or
evidenced by securities, notes, bankers' acceptances or
26
other corporate debt securities or similar instruments issued by Clear
Channel other than the junior subordinated debt securities;
- obligations with respect to letters of credit;
- Clear Channel's indebtedness constituting a guarantee of indebtedness of
others of the type referred to in the preceding two bullet points; or
- renewals, extensions or refundings of any of the indebtedness referred to
in the preceding three bullet points unless, in the case of any
particular indebtedness, renewal, extension or refunding, under the
express provisions of the instrument creating or evidencing the same, or
pursuant to which the same is outstanding, the indebtedness or the
renewal, extension or refunding thereof is not superior in right of
payment to the junior subordinated debt securities.
DESCRIPTION OF PREFERRED STOCK
Clear Channel's board of directors may issue up to 2,000,000 shares of
Class A preferred stock and up to 8,000,000 shares of Class B preferred stock.
Either class of preferred stock may be issued in one or more series, and the
rights, preferences, privileges and qualifications of the preferred stock may be
fixed by the board of directors without any further vote or action by the
shareholders. However, shares of Class B preferred stock will not be entitled to
more than one vote per share when the shares are voted as a class with common
shareholders. In addition, the board of directors and management of Clear
Channel have undertaken not to issue, without prior shareholder approval, Class
B preferred stock
- for any defensive or anti-takeover purpose;
- to implement any shareholders' rights plan; or
- with features intended to make any attempted acquisition of Clear Channel
more difficult or costly.
However, the restrictions do not apply to the 2,000,000 shares of Class A
preferred stock which are currently authorized.
The issuance of either class of preferred stock could decrease the amount
of earnings and assets available for distribution to common shareholders. In
addition, the issuance of either class of preferred stock could adversely affect
the rights and powers, including voting rights, of common shareholders and may
have the effect of delaying, deferring or preventing a change in control of
Clear Channel. No shares of either class of preferred stock have ever been
issued. The particular terms of any series of preferred stock will be described
in the applicable prospectus supplement.
DESCRIPTION OF COMMON STOCK
Clear Channel's board of directors has the authority to issue up to
1,500,000,000 shares of common stock. As of March 8, 2002, 599,518,802 shares of
common stock were outstanding. Common shareholders are entitled to one vote per
share on all matters submitted to a vote of shareholders. In addition common
stockholders may receive dividends, if any, on a pro rata basis that may be
declared from time to time by the board of directors from legally available
funds. However, the payment of any dividends on shares of common stock would be
subject to the payment of any preferential dividends on any preferred stock that
may be outstanding. Upon liquidation, dissolution or winding up of Clear
Channel, common shareholders are entitled to share ratably in any assets
available for distribution to shareholders after payment of all Clear Channel's
obligations and all preferential distributions payable of the holders of any
shares of preferred stock then outstanding.
Common shareholders do not have cumulative voting rights or preemptive or
other rights to acquire or subscribe to additional, unissued or treasury shares.
The shares of common stock currently outstanding are, and the shares of common
stock offered hereby will be, upon issuance thereof, validly issued, fully paid
and nonassessable.
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REPURCHASE AGREEMENT
In May 1977, Clear Channel and several of its shareholders at the time,
including L. Lowry Mays and B.J. McCombs, entered into a Buy-Sell Agreement
restricting the disposition of the outstanding shares of common stock owned by
L. Lowry Mays and B.J. McCombs and their heirs, legal representatives,
successors and assigns. The Buy-Sell Agreement provides that in the event that
L. Lowry Mays, B.J. McCombs or their heirs, legal representatives, successors
and assigns desire to dispose of their shares, other than by disposition by will
or intestacy or through gifts to the party's spouse or children, the shares must
be offered for a period of 30 days to Clear Channel. Any shares not purchased by
Clear Channel must then be offered for a period of 30 days to the other parties
to the Buy-Sell Agreement. If all of the offered shares are not purchased by
Clear Channel or the other parties to the Buy-Sell Agreement, the party offering
his shares may sell them to a third party during the following 90-day period at
a price and on terms not more favorable than those offered to Clear Channel and
the other parties. In addition, L. Lowry Mays, B.J. McCombs or their heirs,
legal representatives, successors and assigns may not individually or in concert
with others sell any shares so as to deliver voting control to a third party
without providing in any sale that all parties to the Buy-Sell Agreement will be
offered the same price and terms for their shares. The Buy-Sell Agreement will
continue in effect following any offering under this prospectus and may preserve
the control of the present principal shareholders.
TEXAS BUSINESS COMBINATION LAW
Clear Channel is governed by the provisions of the Texas Business
Corporation Act. The act imposes a special voting requirement for the approval
of specific business combinations and related party transactions between public
corporations and affiliated stockholders unless the board of directors of the
corporation approves the transaction or the acquisition of shares by the
affiliated stockholder prior to the affiliate stockholders becoming an
affiliated stockholder. The act prohibits specific mergers, sales of assets,
reclassifications and other transactions between stockholders beneficially
owning 20% or more of the outstanding stock of a Texas public corporation for a
period of three years following the stockholder acquiring shares representing
20% or more of the corporation's voting power unless two-thirds of the
unaffiliated stockholders approve the transaction at a meeting held no earlier
than six months after the stockholder acquires that ownership. A vote of
stockholders is not necessary if the board of directors approves the transaction
or approves the purchase of shares by the affiliated stockholder before the
affiliated stockholder acquires beneficial ownership of 20% of the shares, or if
the affiliated stockholder was an affiliated stockholder before December 31,
1996, and continued as such through the date of the transaction.
FOREIGN OWNERSHIP
As a consequence of the restrictions imposed by the Communications Act of
1934 on ownership of common stock by aliens, Clear Channel's bylaws provide that
- not more than one-fifth of the shares outstanding will at any time be
owned of record, or voted, by or for the account of aliens, their
representatives, a foreign government or a corporation organized under
the laws of a foreign country;
- Clear Channel will not be owned or controlled directly or indirectly by
any other corporation of which any officer or more than one-fourth of the
directors are aliens or of which more than one-fourth of the shares are
owned of record or voted by aliens; and
- if the stock records of Clear Channel at any time reflect one-fifth alien
ownership, no transfers of additional shares to aliens will be made and,
if it is found that any additional shares are in fact held by or for the
account of an alien, the shares will not be entitled to vote, to receive
dividends or to have any other rights.
An alien owning shares in excess of one-fifth of the total number of
outstanding shares will be required to transfer them to a United States citizen
or to Clear Channel. This restriction will be applicable
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to any shares of common stock offered under this prospectus and to the issuance
or transfer of the shares after the date of this prospectus. Clear Channel's
stock certificates may bear a legend setting forth this restriction.
DESCRIPTION OF WARRANTS
Clear Channel may issue warrants for the purchase of debt securities or
junior subordinated debt securities, or shares of preferred stock or common
stock. Warrants may be issued independently or together with any debt
securities, junior subordinated debt securities, or shares of preferred stock or
common stock offered by any prospectus supplement and may be attached to or
separate from the debt securities, junior subordinated debt securities, or
shares of preferred stock or common stock. The warrants are to be issued under
warrant agreements to be entered into between Clear Channel and The Bank of New
York, as warrant agent, or such other bank or trust company as is named in the
prospectus supplement relating to the particular issue of warrants. The warrant
agent will act solely as an agent of Clear Channel in connection with the
warrants and will not assume any obligation or relationship of agency or trust
for or with any holders of warrants or beneficial owners of warrants.
GENERAL
If warrants are offered, the prospectus supplement will describe the terms
of the warrants, including the following:
- the offering price;
- the currency, currencies or currency units for which warrants may be
purchased;
- the designation, aggregate principal amount, currency, currencies or
currency units and terms of the debt securities or junior subordinated
debt securities purchasable upon exercise of the debt warrants and the
price at which the debt securities or junior subordinated debt securities
may be purchased upon such exercise;
- the designation, number of shares and terms of the preferred stock
purchasable upon exercise of the preferred stock warrants and the price
at which the shares of preferred stock may be purchased upon such
exercise;
- the designation, number of shares and terms of the common stock
purchasable upon exercise of the common stock warrants and the price at
which the shares of common stock may be purchased upon such exercise;
- if applicable, the designation and terms of the debt securities, junior
subordinated debt securities, preferred stock or common stock with which
the warrants are issued and the number of warrants issued with each debt
security, junior subordinated debt security or share of preferred stock
or common stock;
- if applicable, the date on and after which the warrants and the related
debt securities, junior subordinated debt securities, preferred stock or
common stock will be separately transferable;
- the date on which the right to exercise the warrants will commence and
the date on which the right will expire;
- whether the warrants will be issued in registered or bearer form;
- a discussion of the federal income tax, accounting and other special
considerations, procedures and limitations relating to the warrants; and
- any other terms of the warrants.
Warrants may be exchanged for new warrants of different denominations, may,
if in registered form, be presented for registration of transfer, and may be
exercised at the corporate trust office of the warrant agent or any other office
indicated in the prospectus supplement. Before the exercise of their warrants,
holders of warrants will not have any of the rights of holders of the various
securities purchasable upon the exercise, including the right to receive
payments of principal of, any premium on, or any interest on, the
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debt securities or junior subordinated debt securities purchasable upon the
exercise or to enforce the covenants in the indenture or the junior subordinated
indenture or to receive payments of dividends, if any, on the preferred stock or
common stock purchasable upon the exercise or to exercise any applicable right
to vote. If Clear Channel maintains the ability to reduce the exercise price of
any stock warrant and the right is triggered, it will comply with the federal
securities laws, including Rule 13e-4 under the Exchange Act of 1934, to the
extent applicable.
EXERCISE OF WARRANTS
Each warrant will entitle the holder to purchase a principal amount of debt
securities or junior subordinated debt securities or a number of shares of
preferred stock or common stock at the exercise price as will in each case be
set forth in, or calculable from, the prospectus supplement relating to the
warrant. Warrants may be exercised at the times that are set forth in the
prospectus supplement relating to the warrants. After the close of business on
the date on which the warrant expires, or any later date to which Clear Channel
may extend the expiration date, unexercised warrants will become void.
Subject to any restrictions and additional requirements that may be set
forth in a prospectus supplement relating thereto, warrants may be exercised by
delivery to the warrant agent of the certificate evidencing the warrants
properly completed and duly executed and of payment as provided in the
prospectus supplement of the amount required to purchase the debt securities,
junior subordinated debt securities or shares of preferred stock or common stock
purchasable upon the exercise. The exercise price will be the price applicable
on the date of payment in full, as set forth in the prospectus supplement
relating to the warrants. Upon receipt of the payment and the certificate
representing the warrants to be exercised, properly completed and duly executed
at the corporate trust office of the warrant agent or any other office indicated
in the prospectus supplement, Clear Channel will, as soon as practicable, issue
and deliver the debt securities, junior subordinated debt securities or shares
of preferred stock or common stock purchasable upon the exercise. If fewer than
all of the warrants represented by a certificate are exercised, a new
certificate will be issued for the remaining amount of warrants.
ADDITIONAL PROVISIONS
The exercise price payable and the number of shares of common or preferred
stock purchasable upon the exercise of each stock warrant will be subject to
adjustment in specific events, including the issuance of a stock dividend to
holders of common or preferred stock, respectively, or a combination,
subdivision or reclassification of common or preferred stock, respectively. In
lieu of adjusting the number of shares of common or preferred stock purchasable
upon exercise of each stock warrant, Clear Channel may elect to adjust the
number of stock warrants. No adjustment in the number of shares purchasable upon
exercise of the stock warrants will be required until cumulative adjustments
require an adjustment of at least 1% thereof. Clear Channel may, at its option,
reduce the exercise price at any time. No fractional shares will be issued upon
exercise of stock warrants, but Clear Channel will pay the cash value of any
fractional shares otherwise issuable. In case of any consolidation, merger, or
sale or conveyance of the property of Clear Channel as an entirety or
substantially as an entirety, the holder of each outstanding stock warrant will
have the right upon the exercise to the kind and amount of shares of stock and
other securities and property, including cash, receivable by a holder of the
number of shares of common stock or preferred stock into which the stock
warrants were exercisable immediately prior thereto.
NO RIGHTS AS SHAREHOLDERS
Holders of stock warrants will not be entitled, by virtue of being the
holders, to vote, to consent, to receive dividends, to receive notice as
shareholders with respect to any meeting of shareholders for the election of
Clear Channel's directors or any other matter, or to exercise any rights
whatsoever as its shareholders.
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DESCRIPTION OF STOCK PURCHASE
CONTRACTS AND STOCK PURCHASE UNITS
Clear Channel may issue stock purchase contracts. Stock purchase contracts
are contracts obligating holders to purchase from Clear Channel, and Clear
Channel to sell to the holders, a specified number of shares of common stock or
preferred stock at a future date or dates. The price per share of common stock
or preferred stock may be fixed at the time the stock purchase contracts are
issued or may be determined by reference to a specific formula set forth in the
stock purchase contracts. The formulas may include anti-dilution provisions to
adjust the number of shares issuable under the stock purchase contracts upon
events that would otherwise dilute the interests of the holders. The stock
purchase contracts may be issued separately or as a part of stock purchase units
each representing ownership of a stock purchase contract and debt securities,
junior subordinated debt securities, debt obligations of the United States of
America or its agencies or instrumentalities, or preferred securities issued by
a Clear Channel Trust securing the holders' obligations to purchase the common
stock or the preferred stock under the stock purchase contracts.
When stock purchase units include debt obligations of the United States of
America or its agencies or instrumentalities, the principal of the debt
obligations, when paid at maturity, will automatically be applied to satisfy the
holder's obligation to purchase common stock or preferred stock under the stock
purchase contracts unless the holder of the units settles its obligations under
the stock purchase contracts early through the delivery of consideration to
Clear Channel or its agent in the manner discussed below.
When stock purchase units include junior subordinated debt securities or
Clear Channel Trust preferred securities, the junior subordinated debt
securities or preferred securities will automatically be presented to the
applicable Clear Channel Trust for redemption at 100% of face or liquidation
value and the Clear Channel Trust will present junior subordinated debt
securities in an equal principal amount to Clear Channel for redemption at 100%
of principal amount unless there is an early settlement or the holder elects to
pay the consideration specified in the stock purchase contracts. Amounts
received in respect of the redemption will automatically be transferred to Clear
Channel and applied to satisfy in full the holder's obligation to purchase
common stock or preferred stock under the stock purchase contracts. The stock
purchase contracts may require Clear Channel to make periodic payments to the
holders of the stock purchase units or vice versa, and the payments may be
unsecured or refunded on some basis. The stock purchase contracts may require
holders to secure their obligations in a specified manner.
Holders of stock purchase units may be entitled to settle the underlying
stock purchase contracts prior to the stated settlement date by surrendering the
certificate evidencing the stock purchase units, accompanied by the payment due,
in any form and calculated pursuant to any formula as may be prescribed in the
stock purchase contracts and described in the applicable prospectus supplement.
Upon early settlement, the holder would receive the number of shares of common
stock or preferred stock deliverable under the stock purchase contracts, subject
to adjustment in specific cases. Holders of stock purchase units may be entitled
to exchange their stock purchase units together with appropriate collateral, for
separate stock purchase contracts and Clear Channel Trust preferred securities,
debt securities, junior subordinated debt securities or debt obligations of the
United States of America or its agencies or instrumentalities. In the event of
either an early settlement or exchange, the preferred securities, debt
securities, junior subordinated debt securities or debt obligations that were
pledged as security for the obligation of the holder to perform under the stock
purchase contracts would be transferred to the holder free and clear of Clear
Channel's security interest.
The applicable prospectus supplement will describe the terms of any stock
purchase contracts or stock purchase units including differences, if any, from
the term described above.
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DESCRIPTION OF PREFERRED SECURITIES
Each Clear Channel Trust may issue, from time to time, only one series of
preferred securities having terms described in the prospectus supplement
relating thereto. The declaration of trust under which each Clear Channel Trust
is formed will be replaced by an amended and restated declaration of trust,
which will authorize the regular trustees of the Clear Channel Trust to issue on
behalf of the Clear Channel Trust one series of preferred securities. Each
amended and restated declaration of trust will be qualified as an indenture
under the Trust Indenture Act. The preferred securities will have terms,
including distributions, redemption, voting, liquidation rights and other
preferred, deferred or other special rights or restrictions as will be set forth
in the related amended and restated declaration of trust or made part of the
declaration by the Trust Indenture Act. Reference is made to any prospectus
supplement relating to the preferred securities of a Clear Channel Trust for
specific terms, including
- the specific designation of the preferred securities;
- the number of preferred securities issued by the Clear Channel Trust;
- the annual distribution rate, or method of calculation of the rate, for
preferred securities issued by the Clear Channel Trust, the date or dates
upon which the distributions will be payable and the record date or dates
for the payment of the distributions;
- whether distributions on preferred securities issued by the Clear Channel
Trust will be cumulative, and, in the case of preferred securities having
cumulative distribution rights, the date or dates or method of
determining the date or dates from which distributions on preferred
securities issued by the Clear Channel Trust will be cumulative;
- the amount or amounts which will be paid out of the assets of the Clear
Channel Trust to the holders of preferred securities of the Clear Channel
Trust upon voluntary or involuntary liquidation, dissolution, winding-up
or termination of the Clear Channel Trust;
- the obligation or right, if any, of the Clear Channel Trust to purchase
or redeem preferred securities issued by the Clear Channel Trust and the
price or prices at which, the period or periods within which and the
terms and conditions upon which preferred securities issued by the Clear
Channel Trust will or may be purchased or redeemed, in whole or in part,
pursuant to an obligation or right;
- the voting rights, if any, of preferred securities issued by the Clear
Channel Trust in addition to those required by law, including the number
of votes per preferred security and any requirement for the approval by
the holders of preferred securities, or of preferred securities issued by
one or more Clear Channel Trusts, or of both, as a condition to specified
actions or amendments to the declaration of the Clear Channel Trust;
- the terms and conditions upon which the preferred securities may be
convertible into or exchanged for common stock, preferred stock, debt
securities, junior subordinated debt securities, or indebtedness or other
securities included in this document; and
- any other relevant rights, preferences, privileges, limitations or
restrictions of preferred securities issued by the Clear Channel Trust
consistent with the declaration of the Clear Channel Trust or with
applicable law.
All preferred securities offered hereby will be guaranteed by Clear Channel
as and to the extent set forth below under "Description of the Guarantees."
Federal income tax considerations applicable to any offering of preferred
securities will be described in the applicable prospectus supplement.
In connection with the issuance of preferred securities, each Clear Channel
Trust will issue one series of common securities. The amended and restated
declaration of each Clear Channel Trust will authorize the regular trustees of
the Clear Channel Trust to issue one series of common securities having terms
including distributions, redemption, voting, liquidation rights or restrictions
as set forth in the amended and restated declaration. The terms of the common
securities issued by a Clear Channel Trust will be
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substantially identical to the terms of the preferred securities issued by the
Clear Channel Trust. The common securities will rank equally with the preferred
securities and payments on the common securities will be made on a pro rata
basis with the preferred securities. However, if an event of default under the
amended and restated declaration of trust occurs and is continuing, the rights
of the holders of the common securities to payment in respect of distributions
and payments upon liquidation, redemption and maturity will be subordinated to
the rights of the holders of the preferred securities. Generally, the common
securities issued by a Clear Channel Trust will also carry the right to vote and
to appoint, remove or replace any of the trustees of the Clear Channel Trust.
All the common securities of a Clear Channel Trust will be owned by Clear
Channel or its subsidiary.
As long as payments of interest and other payments are made when due on the
junior subordinated debt securities, the payments will be sufficient to cover
distributions and other payments due on the preferred securities primarily
because the aggregate principal amount of junior subordinated debt securities
held as trust assets will be equal to the sum of the aggregate stated
liquidation amount of the preferred securities, and the interest rate and
interest and other payment dates on the junior subordinated debt securities will
match the distribution rate and distribution and other payment dates for the
preferred securities.
If an event of default with respect to the amended and restated declaration
of any Clear Channel Trust occurs and is continuing, then the holders of
preferred securities of the Clear Channel Trust would rely on the enforcement by
the property trustee of its rights as a holder of the junior subordinated debt
securities deposited in the Clear Channel Trust against Clear Channel. In
addition, the holders of a majority in liquidation amount of the preferred
securities will have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the property trustee or to
direct the exercise of any power conferred upon the property trustee under the
amended and restated declaration of trust, including the right to direct the
property trustee to exercise the remedies available to it as a holder of the
junior subordinated debt securities. If the property trustee fails to enforce
its rights under the junior subordinated debt securities deposited in the Clear
Channel Trust, any holder of the preferred securities may, to the extent
permitted by applicable law, after a period of 60 days has elapsed from the
holder's written request, institute a legal proceeding against Clear Channel to
enforce the property trustee's rights under the junior subordinated debt
securities without first instituting any legal proceeding against the property
trustee or any other person or entity. If an event of default with respect to
the amended and restated declaration of any Clear Channel Trust occurs and is
continuing and the event is attributable to the failure of Clear Channel to pay
interest or principal on the junior subordinated debt securities on the date the
interest or principal is otherwise payable, or in the case of redemption, on the
redemption date, then a holder of preferred securities of the Clear Channel
Trust may also directly institute a proceeding for enforcement of payment to the
holder of the principal of or interest on the junior subordinated debt
securities having a principal amount equal to the aggregate liquidation amount
of the preferred securities held by the holder on or after the respective due
date specified in the junior subordinated debt securities without first
directing the property trustee to enforce the terms of the junior subordinated
debt securities or instituting a legal proceeding against Clear Channel to
enforce the property trustee's rights under the junior subordinated debt
securities. In connection with a direct action, the rights of Clear Channel will
be substituted for the rights of the holder of the preferred securities under
the amended and restated declaration of trust to the extent of any payment made
by Clear Channel to the holder of the preferred securities in a direct action.
The holders of preferred securities of a Clear Channel Trust will not be able to
exercise directly any other remedy available to the holders of the junior
subordinated debt securities unless the property trustee first fails to do so.
Federal income tax considerations applicable to an investment in preferred
securities will be described in the prospectus supplement relating thereto.
The property trustee and its affiliates may provide customary commercial
banking services to Clear Channel and its subsidiaries and participate in
various financing agreements of Clear Channel in the ordinary course of their
business. Initially, the property trustee is The Bank of New York, who currently
serves as Clear Channel's transfer agent and registrar for the common stock and
is a lender to Clear Channel under its credit facility.
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DESCRIPTION OF GUARANTEES
Set forth below is a summary of information concerning the guarantees that
will be executed and delivered from time to time by Clear Channel for the
benefit of the holders of preferred securities of a Clear Channel Trust. Each
preferred security guarantee will be separately qualified under the Trust
Indenture Act and will be held by The Bank of New York, acting in its capacity
as guarantee trustee with respect to the guarantee, for the benefit of holders
of the preferred securities of the applicable Clear Channel Trust. The terms of
each guarantee will be set forth in the guarantee or made part of the guarantee
by the Trust Indenture Act.
GENERAL
Pursuant to each guarantee, Clear Channel will irrevocably and
unconditionally agree, to the extent set forth in the guarantee, to pay in full,
to the holders of the preferred securities issued by the applicable Clear
Channel Trust, the guarantee payments, to the extent not paid by the Clear
Channel Trust, regardless of any defense, right of set-off or counterclaim that
the Clear Channel Trust may have or assert. The following distributions and
other payments with respect to preferred securities issued by a Clear Channel
Trust to the extent not made or paid by the Clear Channel Trust, will be subject
to the guarantee without duplication:
- any accrued and unpaid distributions on the preferred securities, but
only to the extent that in each case Clear Channel has made a payment to
the property trustee of interest on the junior subordinated debt
securities;
- the redemption price, including all accrued and unpaid distributions to
the date of redemption, with respect to any preferred securities called
for redemption by the Clear Channel Trust, but only to the extent that in
each case Clear Channel has made a payment to the property trustee of
interest or principal on the junior subordinated debt securities
deposited in the Clear Channel Trust as trust assets; and
- upon a voluntary or involuntary liquidation, dissolution, winding-up or
termination of the Clear Channel Trust, other than in connection with the
distribution of related junior subordinated debt securities to the
holders of the preferred securities or the redemption of all the
preferred securities upon the maturity or redemption of the junior
subordinated debt securities, the lesser of
(1) the aggregate of the liquidation amount and all accrued and unpaid
distributions on the preferred securities to the date of payment, to
the extent the Clear Channel Trust has funds available, and
(2) the amount of assets of the Clear Channel Trust remaining available
for distribution to holders of the preferred securities upon
liquidation of the Clear Channel Trust.
Clear Channel's obligation to make a guarantee payment may be satisfied by
direct payment of the required amounts by Clear Channel to the holders of the
applicable preferred securities or by causing the applicable Clear Channel Trust
to pay the amounts to the holders.
The guarantee is a full and unconditional guarantee from the time of
issuance of the applicable preferred securities, but the guarantee covers
distributions and other payments on the preferred securities only if and to the
extent that Clear Channel has made a payment to the property trustee of interest
or principal on the junior subordinated debt securities deposited in the
applicable Clear Channel Trust as trust assets. If Clear Channel does not make
interest or principal payments on the junior subordinated debt securities
deposited in the applicable Clear Channel Trust as trust assets, the property
trustee will not make distributions on the preferred securities of the Clear
Channel Trust and the Clear Channel Trust will not have the necessary funds
available to make these payments.
Clear Channel's obligations under the declaration for each Clear Channel
Trust, the guarantee issued with respect to preferred securities issued by the
Clear Channel Trust, the junior subordinated debt securities purchased by the
Clear Channel Trust and the junior subordinated indenture in the aggregate
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will provide a full and unconditional guarantee on a subordinated basis by Clear
Channel of payments due on the preferred securities issued by the Clear Channel
Trust.
CERTAIN COVENANTS OF CLEAR CHANNEL
In each guarantee, Clear Channel will covenant that, so long as any
preferred securities issued by the applicable Clear Channel Trust remain
outstanding, Clear Channel will not declare or pay any dividends on, or redeem,
purchase, acquire or make a distribution or liquidation payment with respect to,
any common stock or preferred stock or make any guarantee payment with respect
to these amounts, if at the time
- Clear Channel will be in default with respect to its guarantee payments
or other payment obligations under the guarantee;
- any event of default under the related amended and restated declaration
of trust has occurred; or
- in the event that junior subordinated debt securities are issued to the
applicable Clear Channel Trust in connection with the issuance of
preferred securities by the Clear Channel Trust, Clear Channel has given
notice of its election to defer payments of interest on the junior
subordinated debt securities by extending the interest payment period as
provided in the terms of the junior subordinated debt securities and the
period, or any extension thereof, is continuing.
However, the foregoing restrictions will not apply to
- dividends, redemptions, purchases, acquisitions, distributions or
payments made by Clear Channel by way of issuance of shares of its
capital stock;
- any declaration of a dividend under a shareholder rights plan or in
connection with the implementation of a shareholder rights plan, the
issuance of capital stock of Clear Channel under a shareholder rights
plan or the redemption or repurchase of any right distributed pursuant to
a shareholder rights plan;
- payments of accrued dividends by Clear Channel upon the redemption,
exchange or conversion of any preferred stock as may be outstanding from
time to time in accordance with the terms of the preferred stock;
- cash payments made by Clear Channel in lieu of delivering fractional
shares upon the redemption, exchange or conversion of any preferred stock
as may be outstanding from time to time in accordance with the terms of
the preferred stock;
- payments under the guarantees; or
- purchases of common stock related to the issuance of common stock or
rights under any of Clear Channel's benefit plans for its directors,
officers or employees, or related to the issuance of common stock or
rights under a dividend reinvestment and stock purchase plan.
In addition, so long as any preferred securities of a Clear Channel Trust
remain outstanding, Clear Channel has agreed to remain the sole direct or
indirect owner of all the outstanding common securities issued by the Clear
Channel Trust and not to cause or permit the common securities to be transferred
except to the extent permitted by the declaration of the Clear Channel Trust,
provided that any permitted successor of Clear Channel under the junior
subordinated indenture may succeed to Clear Channel's ownership of the common
securities, and to use reasonable efforts to cause the Clear Channel Trust to
continue to be treated as a grantor trust for federal income tax purposes,
except in connection with a distribution of junior subordinated debt securities.
AMENDMENTS AND ASSIGNMENT
Except with respect to any changes that do not adversely affect the rights
of holders of the applicable preferred securities, in which case no consent will
be required, each guarantee may be amended only with
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the prior approval of the holders of not less than 66 2/3% in liquidation amount
of the outstanding preferred securities issued by the applicable Clear Channel
Trust. The manner of obtaining any such approval of holders of the preferred
securities will be set forth in an accompanying prospectus supplement. All
guarantees and agreements contained in a guarantee will bind the successors,
assignees, receivers, trustees and representatives of Clear Channel and will
inure to the benefit of the holders of the preferred securities of the
applicable Clear Channel Trust then outstanding. Except in connection with a
consolidation, merger, conveyance, or transfer of assets involving Clear Channel
that is permitted under the junior subordinated indenture, Clear Channel may not
assign its obligations under any guarantee.
TERMINATION OF THE GUARANTEES
Each guarantee will terminate and be of no further force and effect as to
the preferred securities issued by the applicable Clear Channel Trust upon full
payment of the redemption price of all preferred securities of the Clear Channel
Trust, or upon distribution of the junior subordinated debt securities to the
holders of the preferred securities of the Clear Channel Trust in exchange for
all the preferred securities issued by the Clear Channel Trust, or upon full
payment of the amounts payable upon liquidation of the Clear Channel Trust.
Nevertheless, each guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any holder of preferred
securities issued by the applicable Clear Channel Trust must restore payment of
any sums paid under the preferred securities or the guarantee.
STATUS OF THE GUARANTEES
Clear Channel's obligations to make the guarantee payments to the extent
set forth in the applicable guarantee will constitute an unsecured obligation of
Clear Channel and will rank subordinate and junior in right of payment to all
other indebtedness, liabilities and obligations of Clear Channel and any
guarantees, endorsements or other contingent obligations of Clear Channel,
except those made on an equal basis or subordinate by their terms, and senior to
all capital stock issued by Clear Channel and to any guarantee entered into by
Clear Channel in respect of any of its capital stock. Clear Channel's
obligations under each guarantee will rank equally with each other guarantee.
Because Clear Channel is a holding company, Clear Channel's obligations under
each guarantee are also effectively subordinated to all existing and future
liabilities, including trade payables, of Clear Channel's subsidiaries, except
to the extent that Clear Channel is a creditor of the subsidiaries recognized as
such. Each amended and restated declaration of trust will provide that each
holder of preferred securities issued by the applicable Clear Channel Trust, by
acceptance thereof, agrees to the subordination provisions and other terms of
the related guarantee.
The guaranteed party may institute a legal proceeding directly against
Clear Channel to enforce its rights under a guarantee without first instituting
a legal proceeding against any other person or entity. Each guarantee will be
deposited with the guarantee trustee, to be held for the benefit of the holders
of the preferred securities issued by the applicable Clear Channel Trust. The
guarantee trustee will enforce the guarantee on behalf of the holders of the
preferred securities. The holders of not less than a majority in aggregate
liquidation amount of the preferred securities issued by the applicable Clear
Channel Trust have the right to direct the time, method and place of conducting
any proceeding for any remedy available in respect of the related guarantee,
including the giving of directions to the guarantee trustee. If the guarantee
trustee fails to enforce a guarantee as above provided, any holder of preferred
securities issued by the applicable Clear Channel Trust may institute a legal
proceeding directly against Clear Channel to enforce its rights under the
guarantee, without first instituting a legal proceeding against the applicable
Clear Channel Trust, or any other person or entity. However, if Clear Channel
has failed to make a guarantee payment, a holder of preferred securities may
directly institute a proceeding against Clear Channel for enforcement of the
holder's right to receive payment under the guarantee. Clear Channel waives any
right or remedy to require that any action be brought first against a Clear
Channel Trust or any other person or entity before proceeding directly against
Clear Channel.
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MISCELLANEOUS
Clear Channel will be required to provide annually to the guarantee trustee
a statement as to the performance by Clear Channel of its obligations under each
guarantee and as to any default in the performance. Clear Channel is required to
file annually with the guarantee trustee an officer's certificate as to Clear
Channel's compliance with all conditions to be complied with by it under each
guarantee.
The guarantee trustee, prior to the occurrence of a default, undertakes to
perform only those duties as are specifically set forth in the applicable
guarantee and, after default with respect to a guarantee, will exercise the same
degree of care as a prudent individual would exercise under the circumstances in
the conduct of his or her own affairs. Subject to that provision, the guarantee
trustee is under no obligation to exercise any of the powers vested in it by a
preferred securities guarantee at the request of any holder of preferred
securities unless it is offered reasonable security and indemnity against the
costs, expenses and liabilities that might be incurred thereby.
ERISA MATTERS
Clear Channel and its affiliates may each be considered a "party in
interest" within the meaning of the Employee Retirement Income Security Act or a
"disqualified person" within the meaning of Section 4975 of the Internal Revenue
Code with respect to many employee benefit plans that are subject to ERISA. The
purchase of any securities offered by this prospectus by a plan that is subject
to the fiduciary responsibility provisions of ERISA or the prohibited
transaction provisions of Section 4975 of the Internal Revenue Code, including
individual retirement arrangements and other plans described in Section
4975(e)(1), and with respect to which Clear Channel or any affiliate of Clear
Channel is a service provider, a party in interest or a disqualified person, may
constitute or result in a prohibited transaction under ERISA or Section 4975 of
the Internal Revenue Code, unless the securities offered by this prospectus are
acquired pursuant to and in accordance with an applicable exemption. Any pension
or other employee benefit plan proposing to acquire any securities offered by
this prospectus should consult with its counsel.
PLAN OF DISTRIBUTION
Clear Channel or the Clear Channel Trusts may sell the securities offered
by this prospectus
- through underwriters or dealers;
- through agents;
- directly to purchasers; or
- through a combination of any such methods of sale.
Any underwriter, dealer or agent may be deemed to be an underwriter within
the meaning of the Securities Act of 1933. The prospectus supplement relating to
the securities offered by this prospectus will set forth
- their offering terms, including the name or names of any underwriters,
dealers or agents;
- the purchase price of the securities offered by this prospectus;
- the proceeds to Clear Channel or the Clear Channel Trusts from the sale;
- any underwriting discounts, commissions and other items constituting
compensation to underwriters, dealers or agents;
- any initial public offering price;
- any discounts or concessions allowed or reallowed or paid by underwriters
or dealers to other dealers; and
- any securities exchanges on which the securities offered by this
prospectus may be listed.
37
In connection with the sale of securities offered by this prospectus,
underwriters, dealers or agents may be deemed to have received compensation from
Clear Channel or the Clear Channel Trusts in the form of underwriting discounts
or commissions and may also receive commissions from purchasers of the offered
securities for whom they may act as agent. Underwriters may sell the securities
offered by this prospectus to or through dealers, and such dealers may receive
compensation in the form of discounts, concessions or commissions from the
underwriters or commissions from the purchasers for whom they may act as agent.
If underwriters or dealers are used in the sale, the securities offered by
this prospectus will be acquired by the underwriters or dealers for their own
account and may be resold from time to time
- in one or more transactions;
- at a fixed price or prices, which may be changed;
- at market prices prevailing at the time of sale;
- at prices related to the prevailing market prices; or
- at negotiated prices.
The securities offered by this prospectus may be offered to the public
either through underwriting syndicates represented by one or more managing
underwriters or directly by one or more of those firms. Unless otherwise set
forth in the prospectus supplement, the obligations of underwriters or dealers
to purchase the securities offered by this prospectus will be subject to
specific conditions precedent and the underwriters or dealers will be obligated
to purchase all the securities offered by this prospectus if any are purchased.
Any public offering price and any discounts or concessions allowed or reallowed
or paid by underwriters or dealers to other dealers may be changed from time to
time.
The securities offered by this prospectus may be sold directly by Clear
Channel or the Clear Channel Trusts or through agents designated by Clear
Channel or the Clear Channel Trusts. Any agent involved in the offer or sale of
the securities offered by this prospectus in respect of which this prospectus is
delivered will be named, and any commissions payable by Clear Channel or the
Clear Channel Trusts to the agent will be set forth, in the prospectus
supplement. Unless otherwise indicated in the prospectus supplement, any agent
will be acting on a best efforts basis for the period of its appointment.
If so indicated in the prospectus supplement, Clear Channel or the Clear
Channel Trusts will authorize underwriters, dealers or agents to solicit offers
by specific institutions to purchase securities offered by this prospectus from
Clear Channel or the Clear Channel Trusts at the public offering price set forth
in the prospectus supplement pursuant to delayed delivery contracts providing
for payment and delivery on a specified date in the future. The contracts will
be subject to any conditions set forth in the prospectus supplement and the
prospectus supplement will set forth the commission payable for solicitation of
the contracts. The underwriters and other persons soliciting the contracts will
have no responsibility for the validity or performance of any of the contracts.
Underwriters, dealers and agents may be entitled under agreements entered
into with Clear Channel or the Clear Channel Trusts to indemnification by Clear
Channel or the Clear Channel Trusts against civil liabilities, including
liabilities under the Securities Act, or to contribution by Clear Channel or the
Clear Channel Trusts to payments they may be required to make in respect
thereof. The terms and conditions of the indemnification will be described in an
applicable prospectus supplement. Underwriters, dealers and agents may be
customers of, engage in transactions with, or perform services for, Clear
Channel or the Clear Channel Trusts in the ordinary course of business.
Each series of securities offered by this prospectus may be a new issue of
securities with no established trading market. Any underwriters to whom
securities offered by this prospectus are sold by Clear Channel or the Clear
Channel Trusts for public offering and sale may make a market in the securities
offered by this prospectus, but the underwriters will not be obligated to do so
and may
38
discontinue any market making at any time without notice. No assurance can be
given as to the liquidity of the trading market for any securities offered by
this prospectus.
Any underwriter may engage in stabilizing and syndicate covering
transactions in accordance with Rule 104 under the Exchange Act. Rule 104
permits stabilizing bids to purchase the underlying security so long as the
stabilizing bids do not exceed a specified maximum. The underwriters may
over-allot shares of the common stock in connection an offering of common stock,
thereby creating a short position in the underwriters' account. Syndicate
covering transactions involve purchases of the debt securities or junior
subordinated debt securities in the open market after the distribution has been
completed in order to cover syndicate short positions. Stabilizing and syndicate
covering transactions may cause the price of the debt securities or junior
subordinated debt securities to be higher than it would otherwise be in the
absence of those transactions. These transactions, if commenced, may be
discontinued at any time.
LEGAL OPINIONS
The validity of the securities will be passed upon for Clear Channel by its
special counsel, Akin, Gump, Strauss, Hauer & Feld, L.L.P., San Antonio, Texas.
However, matters of Delaware law relating to the validity of the preferred
securities will be passed upon for Clear Channel and the Clear Channel Trusts by
Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware, special Delaware counsel
to Clear Channel and the Clear Channel Trusts. The validity of the securities
will be passed upon for the underwriters, dealers or agents, if any, by Cravath,
Swaine & Moore, New York, New York. Alan D. Feld, the sole shareholder of a
professional corporation which is a partner of Akin, Gump, Strauss, Hauer &
Feld, L.L.P., is a director of Clear Channel and, as of March 8, 2002, owned
approximately 83,300 shares of common stock, including presently exercisable
options to acquire approximately 67,000 shares. Vernon E. Jordan, Jr., of
counsel to Akin, Gump, Strauss, Hauer & Feld, L.L.P., is also a director of
Clear Channel and as of March 8, 2002, held options exercisable to acquire
90,300 shares of common stock.
EXPERTS
The consolidated financial statements of Clear Channel at December 31, 2001
and 2000, and for each of the three years in the period ended December 31, 2001,
and the financial statement schedule appearing in Clear Channel's Annual Report
on Form 10-K for the year ended December 31, 2001, have been audited by Ernst &
Young LLP, independent auditors, as set forth in their reports thereon included
therein and incorporated herein by reference which, as to the year 1999, are
based in part on the report of KPMG LLP, independent auditors. Such consolidated
financial statements referred to above are incorporated herein by reference in
reliance upon such reports given on the authority of such firms as experts in
accounting and auditing.
The consolidated financial statements of AMFM Inc. and Subsidiaries
(formerly Chancellor Media Corporation) as of December 31, 1999 and 1998 and for
each of the three years in the period ended December 31, 1999 incorporated into
this document by reference to the Current Report on Form 8-K of Clear Channel
Communications, Inc., dated June 14, 2000, have been so incorporated in reliance
on the report of PricewaterhouseCoopers LLP, independent accountants, given on
the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
Clear Channel files annual, quarterly and special reports, proxy statements
and other information with the Securities and Exchange Commission. You may read
and copy any reports, statements, or other information Clear Channel files with
the SEC at its public reference rooms at 450 Fifth Street, N.W., Washington,
D.C. 20549, and at the Regional Office of the SEC in Chicago, Illinois. Please
call the SEC at 1-800-SEC-0330 for further information on the public reference
rooms. Clear Channel's filings are also available to the public on the internet,
through a database maintained by the SEC at http://www.sec.gov.
39
In addition, you can inspect and copy Clear Channel's reports, proxy statements
and other information at the offices of the New York Stock Exchange, 20 Broad
Street, New York, New York 10005, on which the common stock is listed.
We filed a registration statement on Form S-3 to register with the SEC the
securities described in this prospectus. This prospectus is part of that
registration statement. As permitted by SEC rules, this prospectus does not
contain all the information contained in the registration statement or the
exhibits to the registration statement. You may refer to the registration
statement and accompanying exhibits for more information about us and our
securities.
The SEC allows us to "incorporate by reference" into this document the
information Clear Channel filed with it. This means that we can disclose
important business, financial and other information to you by referring you to
other documents separately filed with the SEC. All information incorporated by
reference is part of this document, unless and until that information is updated
and superseded by the information contained in this document or any information
incorporated later.
We incorporate by reference the documents listed below:
1. Annual Report on Form 10-K for the fiscal year ended December 31, 2001
filed on March 20, 2002 (File No. 001-09645).
2. Current Report on Form 8-K filed January 18, 2002 (File No. 001-09645).
3. Current Report on Form 8-K filed September 6, 2000 (File No.
001-09645), relating to the condensed consolidated financial statements of AMFM
Inc. and Subsidiaries (pgs. 2-12 of said Form 8-K).
4. Current Report on Form 8-K filed June 14, 2000 (File No. 001-09645)
relating to the consolidated financial statements of AMFM Inc. and Subsidiaries
and the report of PricewaterhouseCoopers LLP dated March 13, 2000 (pgs. 2-48 of
said Form 8-K).
We also incorporate by reference all future filings we make with the SEC
between the date of this document and the date upon which we sell all the
securities we offer with this document.
You may obtain copies of filings referred to above at no cost by contacting
us at the following address: Corporate Secretary, Clear Channel Communications,
Inc., 200 East Basse Road, San Antonio, Texas 78209, telephone: (210) 822-2828.
40
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The estimated expenses, other than underwriting discounts and commissions,
in connection with the issuance and distribution of the common stock registered
hereby are as follows:
SEC registration fee........................................ $ 207,000
Trustee's fees and expenses................................. 75,000
Rating Agency fees.......................................... 225,000
Legal fees and expenses..................................... 450,000
Accounting fees and expenses................................ 150,000
Blue Sky fees and expenses.................................. 30,000
Printing and engraving expenses............................. 300,000
Miscellaneous............................................... 263,000
----------
Total............................................. $1,700,000
==========
The foregoing expenses will be paid by the registrants.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS OF CLEAR CHANNEL.
Article 2.02-1 of the Texas Business Corporation Act provides for
indemnification of directors and officers in certain circumstances. In addition,
the Texas Miscellaneous Corporation Law provides that a corporation may amend
its Articles of Incorporation to provide that no director shall be liable to
Clear Channel or its shareholders for monetary damages for an act or omission in
the director's capacity as a director, provided that the liability of a director
is not eliminated or limited (i) for any breach of the director's duty of
loyalty to Clear Channel or its shareholders, (ii) for acts or omissions not in
good faith or which involve intentional misconduct or knowing violation of law,
(iii) any transaction from which such director derived an improper personal
benefit, or (iv) an act or omission for which the liability of a director is
expressly provided by an applicable statute. Clear Channel has amended its
Articles of Incorporation adopting such limitations on a director's liability.
Clear Channel's Articles of Incorporation also provide in Article Eight, for
indemnification of directors or officers in connection with the defense or
settlement of suits brought against them in their capacities as directors or
officers of Clear Channel, except in respect of liabilities arising from gross
negligence or willful misconduct in the performance of their duties.
Article IX(8) of Clear Channel's bylaws provides for indemnification of any
person made a party to a proceeding by reason of such person's status as a
director, officer, employee, partner or trustee of Clear Channel, except in
respect of liabilities arising from negligence or misconduct in the performance
of their duties.
The Underwriting Agreement provides for indemnification by the underwriters
of the registrants, their directors, officers, and trustees, and by the
registrants of the underwriters, for certain liabilities, including liabilities
arising under the Securities Act.
An insurance policy obtained by the registrant provides for indemnification
of officers and directors of Clear Channel and certain other persons against
liabilities and expenses incurred by any of them in certain stated proceedings
and under certain stated conditions.
INDEMNIFICATION OF TRUSTEES OF THE CLEAR CHANNEL TRUSTS.
The amended and restated declaration of trust of each Clear Channel Trust
will provide that no regular trustee, or affiliate of any regular trustee, or
officer, director, shareholder, member, partner, employee, representative or
agent of any regular trustee or of any such affiliate, or employee or agent of
II-1
the applicable Clear Channel Trust or its affiliates, each an "Indemnified
Person," shall be liable, responsible or accountable in damages or otherwise to
such Clear Channel Trust or any employee or agent of such Clear Channel Trust or
its affiliates for any loss, damage or claim incurred by reason of any act or
omission performed or omitted by such Indemnified Person in good faith on behalf
of such Clear Channel Trust and in a manner such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by such declaration of trust or by law, except that an Indemnified Person
shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's gross negligence or willful misconduct with respect to such
act or omission. Each amended and restated declaration of trust will also
provide that to the fullest extent permitted by applicable law, Clear Channel
shall indemnify and hold harmless each Indemnified Person from and against any
loss, damage or claim incurred by such Indemnified Person by reason of any act
or omission performed or omitted by such Indemnified Person in good faith on
behalf of the applicable Clear Channel Trust and in a manner such Indemnified
Person reasonably believed to be within the scope of authority conferred on such
Indemnified Person by such declaration of trust, except that no Indemnified
Person shall be entitled to be indemnified in respect of any loss, damage or
claim incurred by such Indemnified Person by reason of gross negligence or
willful misconduct with respect to such act or omission. Each amended and
restated declaration of trust will further provide that, to the fullest extent
permitted by applicable law, expenses, including legal fees, incurred by an
Indemnified Person in defending any claim, demand, action, suit or proceeding
shall, from time to time, be advanced by Clear Channel prior to the final
disposition of such claim, demand, action, suit or proceeding upon receipt of an
undertaking by or on behalf of the Indemnified Person to repay such amount if it
shall be determined that the Indemnified Person is not entitled to be
indemnified for the underlying cause of action as authorized by such declaration
of trust.
ITEM 16. EXHIBITS
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
1.1+ -- Form of Underwriting Agreement (Equity).
1.2+ -- Form of Underwriting Agreement (Debt).
1.3** -- Form of Underwriting Agreement (Preferred Securities).
1.4** -- Form of Underwriting Agreement (Stock Purchase
Contracts).
1.5** -- Form of Underwriting Agreement (stock purchase units).
2.1 -- Agreement and Plan of Merger dated October 5, 2001, among
Clear Channel, The Ackerley Group, Inc. and CCMM Sub,
Inc. (Incorporated by reference to exhibit 2.1 to Clear
Channel's Current Report on Form 8-K dated October 9,
2001.)
3.1+ -- Current Articles of Incorporation of Clear Channel.
3.2 -- Third Amended and Restated Bylaws of Clear Channel.
(Incorporated by reference to exhibit 3.2 to Clear
Channel's registration statement on Form S-4 (Reg. No.
333-74196) dated November 29, 2001.)
3.3 -- Amendment to Clear Channel's Articles of Incorporation.
(Incorporated by reference to exhibit 3.3 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1998.)
3.4 -- Second Amendment to Clear Channel's Articles of
Incorporation. (Incorporated by reference to exhibit 3.4
to Clear Channel's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1999.)
3.5 -- Third Amendment to Clear Channel's Articles of
Incorporation. (Incorporated by reference to exhibit 3.5
to Clear Channel's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2000.)
4.1 -- Buy-Sell Agreement by and between Clear Channel, L. Lowry
Mays, B. J. McCombs, John M. Schaefer, and John W.
Barger, dated May 31, 1977. (Incorporated by reference to
exhibit 4.0 to Clear Channel's Registration Statement on
Form S-1 (Reg. No. 002-89161) dated April 19, 1984.)
II-2
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
4.2 -- Fourth Amended and Restated Credit Agreement by and among
Clear Channel, Bank of America, N.A., as administrative
agent, Fleet National Bank, as documentation agent, the
Bank of Montreal and Toronto Dominion (Texas), Inc., as
co -- syndication agents, and certain other lenders dated
June 15, 2000. (Incorporated by reference to exhibit 4.2
to Clear Channel's registration statement on Form S-3
(Reg. No. 333-42028) dated July 21, 2000.)
4.3 -- Credit Agreement by and among Clear Channel, Bank of
America, N.A., as administrative agent, Chase Securities
Inc., as syndication agent, and certain other lenders
dated August 30, 2000. (Incorporated by reference to
exhibit 10.18 to Clear Channel's Annual Report on Form
10-K for the year ended December 31, 2000.)
4.4 -- Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.2 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1997.)
4.5 -- First Supplemental Indenture dated March 30, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.4 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended March 31, 1998.)
4.6 -- Second Supplemental Indenture dated June 16, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.1 to Clear
Channel's Current Report on Form 8-K dated August 27,
1998.)
4.7 -- Third Supplemental Indenture dated June 16, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.2 to Clear
Channel's Current Report on Form 8-K dated August 27,
1998.)
4.8 -- Fourth Supplemental Indenture dated November 24, 1999 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.6 to Clear
Channel's Annual Report on Form 10-K for the year ended
December 31, 1999.)
4.9 -- Fifth Supplemental Indenture dated June 21, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.8 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.10 -- Sixth Supplemental Indenture dated June 21, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.9 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.11 -- Seventh Supplemental Indenture dated July 7, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.10 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.12 -- Eighth Supplemental Indenture dated September 12, 2000,
to Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.10 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000.)
4.13 -- Ninth Supplemental Indenture dated September 12, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.11 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000.)
II-3
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
4.14 -- Tenth Supplemental Indenture dated October 26, 2001, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.12 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2001.)
4.15 -- Form of Senior Debt Security (included in Senior
Indenture filed as Exhibit 4.4).
4.16+ -- Form of Subordinated Indenture.
4.17 -- Form of Subordinated Debt Security (included in Form of
Subordinated Indenture filed as Exhibit 4.16).
4.18+ -- Form of Junior Subordinated Indenture.
4.19 -- Form of Junior Subordinated Debt Security (included in
Form of Junior Subordinated Indenture filed as Exhibit
4.18).
4.20 -- Form of Preferred Securities Certificate (included in
Forms of Amended and Restated Declaration of CCCI Capital
Trusts I, II, and III filed as Exhibits 4.29, 4.30, and
4.31, respectively).
4.21+ -- Form of Warrant Agreement.
4.22+ -- Form of Standard Stock Warrant Agreement Provisions.
4.23+ -- Certificate of Trust of CCCI Capital Trust I.
4.24+ -- Certificate of Trust of CCCI Capital Trust II.
4.25+ -- Certificate of Trust of CCCI Capital Trust III.
4.26+ -- Declaration of CCCI Capital Trust I.
4.27+ -- Declaration of CCCI Capital Trust II.
4.28+ -- Declaration of CCCI Capital Trust III.
4.29+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust I.
4.30+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust II.
4.31+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust III.
4.32+ -- Form of Pledge Agreement.
4.33+ -- Form of Deposit Agreement.
4.34+ -- Form of Stock Purchase Contract Agreement.
4.35+ -- Form of Guarantee of CCCI Capital Trust I.
4.36+ -- Form of Guarantee of CCCI Capital Trust II.
4.37+ -- Form of Guarantee of CCCI Capital Trust III.
5.1++ -- Opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P.,
special counsel for Clear Channel, regarding the senior
debt securities, the subordinated debt securities, the
junior subordinated debt securities, the preferred stock,
the common stock, the warrants, the guarantees, the stock
purchase contracts, and the stock purchase units.
5.2++ -- Opinion of Morris, Nichols, Arsht & Tunnell, special
Delaware counsel for Clear Channel and the Clear Channel
Trusts, regarding the preferred securities.
12* -- Computation of Ratio of Earnings to Fixed Charges.
23.1* -- Consent of Ernst & Young LLP, Independent Auditors.
23.2* -- Consent of KPMG LLP.
23.3* -- Consent of PricewaterhouseCoopers LLP.
23.4 -- Consent of Akin, Gump, Strauss, Hauer & Feld, L.L.P.
(included in opinion filed as Exhibit 5.1).
23.5 -- Consent of Morris, Nichols, Arsht & Tunnell (included in
opinion filed as Exhibit 5.2).
II-4
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
24 -- Power of Attorney for Clear Channel Communications, Inc.
(included on Signature Page previously filed).
25.1++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the senior indenture.
25.2++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the subordinated indenture.
25.3++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the junior subordinated
indenture.
25.4++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust I.
25.5++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust II.
25.6++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust III.
25.7++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust I.
25.8++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust II.
25.9++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust III.
---------------
* Filed herewith.
** To be filed by subsequent Form 8-K.
+ Incorporated by reference to exhibits 1.1, 1.2, 3.1, 4.5, 4.7, and 4.10-4.26,
respectively, of Clear Channel's Registration Statement on Form S-3 (Reg. No.
333-33371) dated September 9, 1997.
++ Previously filed.
ITEM 17. UNDERTAKINGS
The undersigned Registrants hereby undertake:
(1) To file, during any period in which offers or sales are being made
of the securities registered hereby, a post-effective amendment to this
registration statement
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement; provided, however, that notwithstanding
the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Securities and Exchange Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the
effective registration statement; and
(iii) to include any material information with respect to the plan
of distribution not previously disclosed in the registration statement
or any material change to such information in
II-5
the registration statement; provided, however, that the undertakings set
forth in clauses (i) and (ii) above do not apply if the information
required to be included in a post-effective amendment by those clauses
is contained in periodic reports filed by Clear Channel pursuant to
Section 13 or 15(d) of the Securities and Exchange Act of 1934 that are
incorporated by reference in this registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof;
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering; and
(4) That, for the purposes of determining any liability under the
Securities Act of 1933, each filing of Clear Channel's annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934
that is incorporated by reference in this registration statement shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrants pursuant to the provisions described under Item 15 above or
otherwise, the Registrants have been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Securities Act of 1933 and is therefore unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by the Registrants of expenses incurred or paid by a director,
officer or controlling person of the Registrants in the successful defense of
any action, suit or proceeding) is asserted against the Registrants by such
director, officer or controlling person in connection with the securities being
registered, the Registrants will, unless in the opinion of their respective
counsels the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes to file an application for the
purpose of determining the eligibility of the trustee to act under subsection
(a) of Section 310 of the Trust Indenture Act in accordance with the rules and
regulations prescribed by the Commission under Section 305(b)(2) of the Act.
II-6
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Amendment No. 2 to
this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of San Antonio, State of Texas, on March
28, 2002.
CLEAR CHANNEL COMMUNICATIONS, INC.
By: /s/ L. LOWRY MAYS
------------------------------------
L. Lowry Mays
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Amendment
No. 2 has been signed below by the following persons in the capacities and on
the dates indicated below.
NAME TITLE DATE
---- ----- ----
/s/ L. LOWRY MAYS Chief Executive Officer and March 28, 2002
----------------------------------------------------- Director
L. Lowry Mays
/s/ MARK P. MAYS President, Chief Operating March 28, 2002
----------------------------------------------------- Officer and Director
Mark P. Mays
/s/ RANDALL T. MAYS Executive Vice March 28, 2002
----------------------------------------------------- President/Chief Financial
Randall T. Mays Officer (Principal
Financial Officer) and
Director
/s/ HERBERT W. HILL, JR. Senior Vice President/Chief March 28, 2002
----------------------------------------------------- Accounting Officer
Herbert W. Hill, Jr. (Principal Accounting
Officer)
Director
-----------------------------------------------------
Robert L. Crandall
/s/ ALAN D. FELD* Director March 28, 2002
-----------------------------------------------------
Alan D. Feld
Director
-----------------------------------------------------
Thomas O. Hicks
/s/ VERNON E. JORDAN, JR.* Director March 28, 2002
-----------------------------------------------------
Vernon E. Jordan, Jr.
/s/ PERRY J. LEWIS* Director March 28, 2002
-----------------------------------------------------
Perry J. Lewis
/s/ B.J. MCCOMBS* Director March 28, 2002
-----------------------------------------------------
B.J. McCombs
II-7
NAME TITLE DATE
---- ----- ----
/s/ THEODORE H. STRAUSS* Director March 28, 2002
-----------------------------------------------------
Theodore H. Strauss
/s/ JOHN H. WILLIAMS* Director March 28, 2002
-----------------------------------------------------
John H. Williams
*By: /s/ L. LOWRY MAYS
------------------------------------------------
L. Lowry Mays, attorney-in fact pursuant to a
Power of Attorney previously filed.
II-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, each of CCCI
Capital Trust I, CCCI Capital Trust II and CCCI Capital Trust III certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-3 and has duly caused this Amendment No. 2 to this registration
statement to be signed on its behalf by the undersigned thereunto duly
authorized, in the City of San Antonio, Texas on the 28th day of March, 2002.
CCCI CAPITAL TRUST I,
a Delaware business trust
By: CLEAR CHANNEL COMMUNICATIONS, INC.,
as Depositor
By: /s/ L. LOWRY MAYS
---------------------------------------
L. Lowry Mays
Chief Executive Officer
CCCI CAPITAL TRUST II,
a Delaware business trust
By: CLEAR CHANNEL COMMUNICATIONS, INC.,
as Depositor
By: /s/ L. LOWRY MAYS
---------------------------------------
L. Lowry Mays
Chief Executive Officer
CCCI CAPITAL TRUST III,
a Delaware business trust
By: CLEAR CHANNEL COMMUNICATIONS, INC.,
as Depositor
By: /s/ L. LOWRY MAYS
---------------------------------------
L. Lowry Mays
Chief Executive Officer
II-9
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
1.1+ -- Form of Underwriting Agreement (Equity).
1.2+ -- Form of Underwriting Agreement (Debt).
1.3** -- Form of Underwriting Agreement (Preferred Securities).
1.4** -- Form of Underwriting Agreement (Stock Purchase
Contracts).
1.5** -- Form of Underwriting Agreement (stock purchase units).
2.1 -- Agreement and Plan of Merger dated October 5, 2001, among
Clear Channel, The Ackerley Group, Inc. and CCMM Sub,
Inc. (Incorporated by reference to exhibit 2.1 to Clear
Channel's Current Report on Form 8-K dated October 9,
2001.)
3.1+ -- Current Articles of Incorporation of Clear Channel.
3.2 -- Third Amended and Restated Bylaws of Clear Channel.
(Incorporated by reference to exhibit 3.2 to Clear
Channel's registration statement on Form S-4 (Reg. No.
333-74196) dated November 29, 2001.)
3.3 -- Amendment to Clear Channel's Articles of Incorporation.
(Incorporated by reference to exhibit 3.3 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1998.)
3.4 -- Second Amendment to Clear Channel's Articles of
Incorporation. (Incorporated by reference to exhibit 3.4
to Clear Channel's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1999.)
3.5 -- Third Amendment to Clear Channel's Articles of
Incorporation. (Incorporated by reference to exhibit 3.5
to Clear Channel's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2000.)
4.1 -- Buy-Sell Agreement by and between Clear Channel, L. Lowry
Mays, B. J. McCombs, John M. Schaefer, and John W.
Barger, dated May 31, 1977. (Incorporated by reference to
exhibit 4.0 to Clear Channel's Registration Statement on
Form S-1 (Reg. No. 002-89161) dated April 19, 1984.)
4.2 -- Fourth Amended and Restated Credit Agreement by and among
Clear Channel, Bank of America, N.A., as administrative
agent, Fleet National Bank, as documentation agent, the
Bank of Montreal and Toronto Dominion (Texas), Inc., as
co -- syndication agents, and certain other lenders dated
June 15, 2000. (Incorporated by reference to exhibit 4.2
to Clear Channel's registration statement on Form S-3
(Reg. No. 333-42028) dated July 21, 2000.)
4.3 -- Credit Agreement by and among Clear Channel, Bank of
America, N.A., as administrative agent, Chase Securities
Inc., as syndication agent, and certain other lenders
dated August 30, 2000. (Incorporated by reference to
exhibit 10.18 to Clear Channel's Annual Report on Form
10-K for the year ended December 31, 2000.)
4.4 -- Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.2 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1997.)
4.5 -- First Supplemental Indenture dated March 30, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.4 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended March 31, 1998.)
4.6 -- Second Supplemental Indenture dated June 16, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.1 to Clear
Channel's Current Report on Form 8-K dated August 27,
1998.)
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
4.7 -- Third Supplemental Indenture dated June 16, 1998 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and the Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.2 to Clear
Channel's Current Report on Form 8-K dated August 27,
1998.)
4.8 -- Fourth Supplemental Indenture dated November 24, 1999 to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.6 to Clear
Channel's Annual Report on Form 10-K for the year ended
December 31, 1999.)
4.9 -- Fifth Supplemental Indenture dated June 21, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.8 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.10 -- Sixth Supplemental Indenture dated June 21, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.9 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.11 -- Seventh Supplemental Indenture dated July 7, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.10 to Clear
Channel's registration statement on Form S-3 (Reg. No.
333-42028) dated July 21, 2000.)
4.12 -- Eighth Supplemental Indenture dated September 12, 2000,
to Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.10 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000.)
4.13 -- Ninth Supplemental Indenture dated September 12, 2000, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.11 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000.)
4.14 -- Tenth Supplemental Indenture dated October 26, 2001, to
Senior Indenture dated October 1, 1997, by and between
Clear Channel and The Bank of New York, as Trustee.
(Incorporated by reference to exhibit 4.12 to Clear
Channel's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2001.)
4.15 -- Form of Senior Debt Security (included in Senior
Indenture filed as Exhibit 4.4).
4.16+ -- Form of Subordinated Indenture.
4.17 -- Form of Subordinated Debt Security (included in Form of
Subordinated Indenture filed as Exhibit 4.16).
4.18+ -- Form of Junior Subordinated Indenture.
4.19 -- Form of Junior Subordinated Debt Security (included in
Form of Junior Subordinated Indenture filed as Exhibit
4.18).
4.20 -- Form of Preferred Securities Certificate (included in
Forms of Amended and Restated Declaration of CCCI Capital
Trusts I, II, and III filed as Exhibits 4.29, 4.30, and
4.31, respectively).
4.21+ -- Form of Warrant Agreement.
4.22+ -- Form of Standard Stock Warrant Agreement Provisions.
4.23+ -- Certificate of Trust of CCCI Capital Trust I.
4.24+ -- Certificate of Trust of CCCI Capital Trust II.
4.25+ -- Certificate of Trust of CCCI Capital Trust III.
4.26+ -- Declaration of CCCI Capital Trust I.
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
4.27+ -- Declaration of CCCI Capital Trust II.
4.28+ -- Declaration of CCCI Capital Trust III.
4.29+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust I.
4.30+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust II.
4.31+ -- Form of Amended and Restated Declaration of CCCI Capital
Trust III.
4.32+ -- Form of Pledge Agreement.
4.33+ -- Form of Deposit Agreement.
4.34+ -- Form of Stock Purchase Contract Agreement.
4.35+ -- Form of Guarantee of CCCI Capital Trust I.
4.36+ -- Form of Guarantee of CCCI Capital Trust II.
4.37+ -- Form of Guarantee of CCCI Capital Trust III.
5.1++ -- Opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P.,
special counsel for Clear Channel, regarding the senior
debt securities, the subordinated debt securities, the
junior subordinated debt securities, the preferred stock,
the common stock, the warrants, the guarantees, the stock
purchase contracts, and the stock purchase units.
5.2++ -- Opinion of Morris, Nichols, Arsht & Tunnell, special
Delaware counsel for Clear Channel and the Clear Channel
Trusts, regarding the preferred securities.
12* -- Computation of Ratio of Earnings to Fixed Charges.
23.1* -- Consent of Ernst & Young LLP, Independent Auditors.
23.2* -- Consent of KPMG LLP.
23.3* -- Consent of PricewaterhouseCoopers LLP.
23.4 -- Consent of Akin, Gump, Strauss, Hauer & Feld, L.L.P.
(included in opinion filed as Exhibit 5.1).
23.5 -- Consent of Morris, Nichols, Arsht & Tunnell (included in
opinion filed as Exhibit 5.2).
24 -- Power of Attorney for Clear Channel Communications, Inc.
(included on Signature Page previously filed).
25.1++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the senior indenture.
25.2++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the subordinated indenture.
25.3++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the junior subordinated
indenture.
25.4++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust I.
25.5++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust II.
25.6++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the declaration of trust of
CCCI Capital Trust III.
25.7++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust I.
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
25.8++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust II.
25.9++ -- Statement on Form T-1 of the eligibility of The Bank of
New York, as trustee under the trust guarantee of the
Clear Channel for the benefit of the holders of preferred
securities of the CCCI Capital Trust III.
---------------
* Filed herewith.
** To be filed by subsequent Form 8-K.
+ Incorporated by reference to exhibits 1.1, 1.2, 3.1, 4.5, 4.7, and 4.10-4.26,
respectively, of Clear Channel's Registration Statement on Form S-3 (Reg. No.
333-33371) dated September 9, 1997.
++ Previously filed.