Report: iHeartMedia, Lenders Reach Temporary Arrangement To Forestall Default Notice
March 2, 2016 at 3:58 AM (PT)
BLOOMBERG is reporting that iHEARTMEDIA may have reached a deal with lenders to temporarily forestall their filing a default notice over the shift of assets to a new subsidiary, BROADER MEDIA LLC, last year. The group of creditors is holding off filing against the company under a "standstill agreement" in which iHEARTMEDIA agrees not to move any additional assets, two sources told BLOOMBERG; the deal runs through TODAY (3/2) but can be extended by mutual consent.
The move buys some time for both sides to continue to work on a possible debt exchange that would extend the maturities of some senior debt by swapping it for new, longer-term debt. iHEART is presently grappling with the problem of $193 million in notes coming due this year, plus $230 million in a revolving credit line due next year, a billion dollars in debt maturing in 2018, and $8.3 billion in bonds and term loans due in 2019, according to BLOOMBERG.
“Our operating business is strong and therefore provides us with the flexibility to manage our capital structure in a prudent manner,” iHEART spokeswoman WENDY GOLDBERG told BLOOMBERG. “We’re always open to constructive dialogue with our lenders as we focus on positioning iHEARTMEDIA for long-term growth.” Spokespeople for iHEART owners BAIN CAPITAL and THOMAS H. LEE PARTNERS and creditor representatives PJT PARTNERS INC. and JONES DAY did not comment on the story.