iHeartMedia Makes A New Offer To Lenders, But No Deal Reached

Offer

In a filing with the SEC, iHEARTCOMMUNICATIONS, INC. said that it has made a counter proposal to its lenders in another attempt to stave off bankruptcy, but no deal has been reached based on the newly offered terms.

The proposal, made OCTOBER 24th, offered lenders an out-of-court exchange with minimum participation thresholds and various restructuring of debt in a newly-recapitalized iHEARTCOMMUNICATIONS/iHEARTMEDIA/CLEAR CHANNEL OUTDOOR HOLDINGS, stipulating that the company's receivables-based credit facility would remain outstanding and/or be refinanced at closing; that Term Loans D and E and priority guarantee note holders would get about $7 billion of new first lien debt from a recapitalized iHEART with a 5 to 7-year maturity, secured by substantially all of the recapitalized company's assets, 50% of the equity, and 70% of the parent company's stake in CLEAR CHANNEL OUTDOOR HOLDINGS; that holders of legacy notes would not be included in the exchange offer and the legacy notes would remain outstanding; that holders of 10% notes due 2018, 14% notes due 2021 and existing equity holders would get 50% of equity in the recapitalized company, 30% of the company's stake in OUTDOOR, and about $300 million of new senior unsecured debt of the recapitalized company with a 7 to 9-year maturity; and that management would get a new management incentive plan to be negotiated. The company’s proposal also involved full and mutual releases.

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