UPDATE 1-Clear Channel says buyout to close in 2008

BANGALORE/NEW YORK Dec 4 (Reuters) - U.S. radio operator Clear Channel Communications Inc. (CCU.N) said on Tuesday a pending $20 billion deal to take it private would close later than expected, as it awaits regulatory clearance.

San Antonio-based Clear Channel agreed earlier this year to be bought for $39.20 a share by private equity firms Bain Capital Partners and Thomas H. Lee Partners.

The deal, which has been approved by shareholders, is now expected to close in the first quarter of 2008, rather than before the end of 2007, as previously targeted, it said.

However, Clear Channel said it was confident that necessary regulatory conditions would ultimately be satisfied.

Financing for the Clear Channel buyout is backed by a $19.5 billion bank loan and $2.6 billion in high-yield bonds, provided by six banks, which are yet to sell the financing to other investors, sources told Reuters LPC. (Reporting by Megan Davies in New York and Neetha Mahadevan in Bangalore)