iHeartMedia Files For Yet Another Exchange Offer Extension As Debtholders Work To Avoid A Bankruptcy

Dealing With Debt

iHEARTMEDIA filed an 8-K Form YESTERDAY (8/17) with THE SECURITIES AND EXCHANGE COMMISSION, once again seeking an extension of the exchange offer to noteholders originally made on WEDNESDAY, MARCH 15th. This is the eleventh proposed extension to deal with the over $20 billion in debt the company is struggling with. 

The company wrote, "On AUGUST 17th, 2017, iHEARTCOMMUNICATIONS, INC. (the 'Company') issued a press release announcing that it has extended the expiration time and withdrawal deadline in the previously announced exchange offers (the 'Notes Exchange Offers') that were launched on MARCH 15, 2017 to exchange certain series of its outstanding debt securities (the 'Existing Notes') for new securities of the Company, iHEARTMEDIA, INC. and CC OUTDOOR HOLDINGS, INC. and concurrent consent solicitations with respect to the terms of the Existing Notes.

"On AUGUST 17, 2017, the Company also issued a press release announcing that it has extended the deadline for participation in the previously announced offers (the 'Term Loan Offers') that were launched on MARCH 15, 2017 to amend its outstanding Term Loan D and Term Loan E borrowings under its senior secured credit facility."

iHEART details in the filing that as of AUGUST 16th at 5p (ET), "an aggregate amount of approximately $45.5 million of Existing Notes, representing approximately 0.6% of outstanding Existing Notes, had been tendered into the Exchange Offers."

Last week, THE NEW YORK POST reported, "The biggest creditor of iHEARTMEDIA is close to blinking in its nearly six-month stare-down with AMERICA’s largest owner of radio stations," noting, "Mutual fund FRANKLIN RESOURCES is working with investment bank PJT PARTNERS on a restructuring plan that could save iHEART from bankruptcy — although it may ask for more cash guarantees and possibly a controlling equity stake in return, a source close to the situation said."

FRANKLIN reportedly holds $2.3 Billion of iHEARTMEDIA’s $20.4 Billion of debt.

The paper adds, "FRANKLIN’s adviser, PJT PARTNERS, has recommended not pushing iHEART into a bankruptcy, a last-ditch scenario which likely would result in a sale of the most profitable of its 855 stations." The report also notes, "FRANKLIN’s restructuring plan also would likely leave in place iHEART Chairman and CEO BOB PITTMAN, the former MTV honcho who is generally liked by creditors, the source said."

« see more Net News