Clear Channel Outdoor (NYSE:CCO) Seeking Alternative Financing Avenues

Clear Channel Outdoor (NYSE:CCO) said in the latter part of December that they were seeking alternative financing sources, which is considered a negative by Miller Tabak, which sees them as having a strong balance sheet already.

Miller said, "On 12/24/10, CCMO announced that it was exploring various financing alternatives, one of which could most directly affect CCO shareholders, and that would be the potential for CCO to take on additional indebtedness. We believe CCO has no need for more debt – its balance sheet is already quite strong, with $665 mm of cash on hand at 9/30/10, another $254 mm due from CCMO, $2.5 bn of long-dated debt, an estimated $303 mm of ‘10E Free Cash Flow generation, and possibly another $322 mm in FCF."

Miller Tabak downgraded Clear Channel Outdoor from "Buy" to "Neutral." Clear Channel closed at $14.34 on Friday, losing $0.31, or 2.12 percent. Miller has a price target of $15 on them.