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These excerpts taken from the CCO 8-K filed Dec 11, 2009. MARKET RISK MANAGEMENT We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, equity security prices and foreign currency exchange rates. Market Risk Management We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, equity security prices and foreign currency exchange rates. Interest Rate Risk We had approximately $2.6 billion total debt outstanding as of September 30, 2009, of which $2.5 billion is debt with Clear Channel Communications. The debt with Clear Channel Communications accrues interest at a variable per annum rate equal to the weighted average cost of long-term debt for Clear Channel Communications, calculated on a monthly basis. In connection with the offering the interest rate on the CCU Intercompany Note will be changed to the Revised CCU Intercompany Note Rate. Furthermore, in its Quarterly Report on Form 10-Q filed with the SEC on November 9, 2009 CC Media Holdings stated that 46% of its debt was variable based on market interest rates. Each 12.5 basis point increase or decrease in interest rates would have resulted in a corresponding increase or decrease in our interest expense and cash outlay for the nine months ended September 30, 2009 by approximately $1.2 million. This potential increase or decrease is based on the simplified assumption that the level of floating rate debt remained constant as of September 30, 2009. An increase or decrease to interest rates is then assumed and applied to that floating rate debt balance to determine the per annum effect. This potential increase or decrease does not include any adjustment for a change in the fixed rate debt of Clear Channel Communications, which currently constitutes 54% of its total debt.
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Equity Price Risk The carrying value of our available-for-sale equity securities is affected by changes in their quoted market prices. It is estimated that a 20% change in the market prices of these securities would change their carrying value and comprehensive loss at September 30, 2009 by $2.2 million. For a further discussion of our available-for-sale equity securities, see the accompanying notes to the financial statements included in this offering circular. Foreign Currency Risk We have operations in countries throughout the world. The financial results of our foreign operations are measured in their local currencies, except in the hyperinflationary countries in which we operate. As a result, our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the foreign markets in which we operate. We believe we mitigate a small portion of our exposure to foreign currency fluctuations with a natural hedge through borrowings in currencies other than the U.S. dollar. Our foreign operations reported a net loss of approximately $226.2 million for the nine months ended September 30, 2009. We estimate a 10% change in the value of the U.S. dollar relative to foreign currencies would have changed our net loss for the nine months ended September 30, 2009, by approximately $22.6 million. Our earnings are also affected by fluctuations in the value of the U.S. dollar as compared to foreign currencies as a result of our equity method investments in various countries. It is estimated that the result of a 10% fluctuation in the value of the dollar relative to these foreign currencies at September 30, 2009 would change our equity in earnings of nonconsolidated affiliates by $2.6 million and would change our net loss by approximately $1.6 million for the nine months ended September 30, 2009. This analysis does not consider the implications such currency fluctuations could have on the overall economic activity that could exist in such an environment in the United States or the foreign countries or on the results of operations of these foreign entities. This excerpt taken from the CCO DEF 14A filed Apr 30, 2009. MARKET RISK MANAGEMENT We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, equity security prices and foreign currency exchange rates. These excerpts taken from the CCO 10-K filed Mar 2, 2009. MARKET RISK MANAGEMENT We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, equity security prices and foreign currency exchange rates. MARKET RISK MANAGEMENT We had approximately $2.6 billion SIZE="2">Equity Price Risk The carrying value of our available-for-sale equity securities is affected by changes in their quoted This excerpt taken from the CCO DEF 14A filed Apr 7, 2008. MARKET RISK MANAGEMENT We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates and foreign currency exchange rates. These excerpts taken from the CCO 10-K filed Feb 14, 2008. MARKET RISK MANAGEMENT We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates and foreign currency exchange rates. MARKET RISK We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates and | EXCERPTS ON THIS PAGE:
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