Clear Channel Litigation Settling, Deal Re-Negotiated

[WSJ_law_blog]

Thanks to our colleagues over at Deal Journal, we have this exciting piece of private equity news: The Clear Channel buyout is being renegotiated and the litigation is settling, according to a source. The i-banks funding the buyout are expected to pay $36 per share, an 8% reduction from the original deal price of $39.20. (Here’s background on the litigation.)

Here’s the backstory: In 2006, Thomas H. Lee and Bain Capital agreed to acquire Clear Channel for $19.4 billion and take on $7.8 billion of its debt. The banks that agreed to finance the deal were Citigroup, Morgan Stanley, Deutsche Bank, Credit Suisse, Royal Bank of Scotland and Wachovia. But earlier this year, the P.E. firms alleged that the banks were improperly trying to forgo funding the deal.

More to come when we have it.