Lamar Pushes Its Receivables Securitization Program Out To October 2029, 8-K Shows
An eighth amendment with PNC also loosens which receivables qualify; the filing gives no dollar size for the facility.
Lamar Media, the Lamar Advertising subsidiary, and two special-purpose units extended the maturity of their accounts receivable securitization program to October 1, 2029, according to an 8-K filed Tuesday. The amendment, dated October 1, also adds flexibility on which receivables qualify.
What the 8-K says
The filing reports an Eighth Amendment to a Receivables Financing Agreement dated December 18, 2018. The parties are Lamar Media, acting as initial servicer, and two indirect wholly owned special-purpose subsidiaries, Lamar QRS Receivables, LLC and Lamar TRS Receivables, LLC, which are the borrowers.
PNC Bank, National Association is administrative agent and a lender. PNC Capital Markets LLC is structuring agent and sustainability agent. Other lenders may join from time to time.
The amendment does two things. It moves the maturity date of the program to October 1, 2029, and it gives "additional flexibility for eligibility of certain receivables" under the program. The filing does not give a dollar size for the facility.
The filing was made under Item 1.01, a material definitive agreement, and Item 2.03, which covers direct financial obligations. The full amendment is Exhibit 10.1.
The PNC relationship
The filing says PNC Bank is also a lender under Lamar Media's senior credit facility. PNC and its affiliates do advisory, investment banking and commercial banking work for Lamar Media and its affiliates from time to time, and receive customary fees. On the credit facility, they also receive expense reimbursement.
Chief Financial Officer Jay L. Johnson signed the filing for both Lamar Advertising Company and Lamar Media Corp., dated October 6.
What it changes, and what to watch
The change is one of timing and terms. The program's end date moves out to October 1, 2029, and the standards for which receivables count are looser. The filing states no pricing, no facility size and no drawn balance, so the exhibit is where those terms would sit.
Lamar shares closed Tuesday at $144.74 and were unchanged in Tuesday after-hours trading (market data). The filing was accepted at 4:05 p.m. ET, after the regular session ended.
Any further amendments to the program would be disclosed in later filings.
The terms that matter, including any detail on eligibility, are in Exhibit 10.1 filed with the 8-K.
Sources
- 8-K Filing — LAMAR ADVERTISING CO/NEW (LAMR) — SEC EDGAR
