iHeartCommunications Tells SEC It's 'Exploring Possible Private Capital-Raising Transaction'

Raising Cash?

In a Form 8-K filing with the SEC TODAY (12/11), iHEARTMEDIA indirect subsidiary iHEARTCOMMUNICATIONS said that it is "currently exploring a possible private capital-raising transaction."

The deal would pledge the 100 million shares of Class B common stock of CLEAR CHANNEL OUTDOOR HOLDINGS, INC. that the company placed in its wholly-owned subsidiary BROADER MEDIA, LLC and the 10,726,917 shares of Class A common stock held by another wholly-owned subsidiary, CC FINCO, LLC for the benefit of investors. 

The proposed deal comes as the company continues to try to get creditors to agree to debt swaps, most recently trading proposals at the end of NOVEMBER that bogged down over differences in how much of iHEART's equity would go to the creditors as opposed to equity holders BAIN CAPITAL and THOMAS H. LEE PARTNERS and junior bondholders.  The deal referenced in TODAY's filing may signal movement in those talks.

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