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Lamar Advertising Boosts Financial Flexibility With $1.1B Refinancing
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Key Takeaways
Lamar raised $400M from 5.375% Senior Notes due 2033 via private placement.
The company secured a new $700M Term-Loan B, replacing debt due in 2027.
Refinancing enhances liquidity and improves Lamar's debt maturity profile.
Lamar Advertising Company (LAMR - Free Report) announced that it has completed refinancing transactions totaling $1.1 billion via its wholly owned subsidiary, Lamar Media Corp. The move will aid the balance sheet strength required for future growth endeavors.
The transactions comprised the sale of 5.375% Senior Notes due 2033, amounting to $400 million through an institutional private placement. The sale proceeds are to be used for repayment of debt outstanding under the revolving portion of its senior credit facility and the Accounts Receivable Securitization Program.
Moreover, Lamar secured a new Term-Loan B (“TLB”) facility to the tune of $700 million. The seven-year TLB carries an interest rate of 150 basis points over SOFR. It serves as a replacement for the existing $600 million TLB, due 2027, and a part of the revolving portion of the senior credit facility.
LAMR: In a Nutshell
This refinancing offers Lamar enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.
LAMR makes efforts to boost its cash flow and alleviate bottom-line pressure. As of June 30, 2025, the company had $363 million of liquidity, consisting of $55.7 million of cash and cash equivalents and $307.3 million available under its revolving portion of senior credit facility.
In the past six months, shares of this Zacks Rank #3 (Hold) company have risen 6.9% against the industry's decline of 0.2%.
Image: Bigstock
Lamar Advertising Boosts Financial Flexibility With $1.1B Refinancing
Key Takeaways
Lamar Advertising Company (LAMR - Free Report) announced that it has completed refinancing transactions totaling $1.1 billion via its wholly owned subsidiary, Lamar Media Corp. The move will aid the balance sheet strength required for future growth endeavors.
The transactions comprised the sale of 5.375% Senior Notes due 2033, amounting to $400 million through an institutional private placement. The sale proceeds are to be used for repayment of debt outstanding under the revolving portion of its senior credit facility and the Accounts Receivable Securitization Program.
Moreover, Lamar secured a new Term-Loan B (“TLB”) facility to the tune of $700 million. The seven-year TLB carries an interest rate of 150 basis points over SOFR. It serves as a replacement for the existing $600 million TLB, due 2027, and a part of the revolving portion of the senior credit facility.
LAMR: In a Nutshell
This refinancing offers Lamar enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.
LAMR makes efforts to boost its cash flow and alleviate bottom-line pressure. As of June 30, 2025, the company had $363 million of liquidity, consisting of $55.7 million of cash and cash equivalents and $307.3 million available under its revolving portion of senior credit facility.
In the past six months, shares of this Zacks Rank #3 (Hold) company have risen 6.9% against the industry's decline of 0.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower (WELL - Free Report) and SL Green Realty (SLG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for WELL’s 2025 FFO per share has been revised marginally upward over the past two months to $5.08.
The Zacks Consensus Estimate for SLG’s current-year FFO per share has been revised northward by 15.4% in the past three months to $6.21.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.