Lamar Advertising Company ( LAMR - Analyst Report ) recently closed an issuance of $535 million worth 5% Senior Subordinated Notes due in 2023 in an institutional private placement. The issuance was given effect through the company’s subsidiary, Lamar Media Corp.

The proceeds, net of fees and expenses, amounting to $527.1 million, will likely be used for the under-mentioned purposes—

• Redemption of Lamar Media’s 6 5/8% Senior Subordinated Notes due in 2015—Series B and 6 5/8% Senior Subordinated Notes due in 2015—Series C amounting to roughly $137.2 million. This includes—

— $71.1 million principal amount of 6 5/8% Senior Subordinated Notes due in 2015—Series C, expected to be redeemed by November 29, 2012, and…..

— As previously communicated in early October, 2012, aggregate principal amount of $36.1 million of Series B notes and $30 million of Series C notes, are expected to get redeemed by November 8, 2012.

• Funding of the acquisition of NextMedia Outdoor, Inc., and
• General corporate purposes

Lamar is a Louisiana-based leading owner and operator of outdoor advertising structures in the U.S. The company is scheduled to release its third quarter 2012 financial results on November 7.

The Zacks Consensus Estimate for the third quarter stands at 14 cents, representing a year-over-year growth of 257.5%. Estimates for 2012 and 2013 are 13 cents and 58 cents, reflecting annual growth of 555.0% and 340.0%, respectively.

The company currently bears a Zacks #3 Rank, translating into a short-term (1-3 months) Hold rating. Its prime competitor Clear Channel Outdoor Holdings Inc. ( CCO - Snapshot Report ) holds a Zacks #3 (Hold) Rank.