Debt-laden radio company Clear Channel on Monday said its outdoor unit completed raising $2.5 billion in the high-yield debt market, removing concerns about the company's short-term liquidity.

Proceeds will be used to repay debt owed to Clear Channel.

Private equity firms THL Partners and Bain Capital together bought radio operator Clear Channel in 2008 in a $17.9 billion deal.

The company, burdened with about $20 billion debt as of September 30, faced declining advertising spending as the financial crisis forced companies to cut back.

Its subsidiary Clear Channel Outdoor, which is majority owned by Clear Channel and sells billboard and transit advertising, in November reported a 19 percent decrease in revenues over the previous year.

Clear Channel said in a regulatory filing that it expects to be in compliance with its covenants under its senior secured credit facilities for the remainder of 2009 and through 2010.

The notes were priced earlier this month at par to yield 9.25 percent, or 602 basis points over U.S. Treasuries.

Goldman Sachs, Citi, Credit Suisse, Deutsche Bank, and Morgan Stanley were the joint bookrunners for the sale.

(Reporting by Megan Davies and Karen Brettell; Editing by Leslie Adler)

Investment Sale