iHeart Lenders Could Hit ‘Pause’ Button
iHeartMedia is said to be discussing with lenders a plan to give the company more time to pay down its debt.
Reportedly being discussed is a deal to “pause” the some $20 billion in debt to allow parties time to discuss how to handle debt coming due within the next four years, Bloomberg reported.
iHeart has been tapping assets from healthier divisions to boost cash; the company faces a wall of $8.3 billion of senior debt in 2019, 40% of total obligations.
iHeart and its lenders have been in a dispute over the broadcaster’s action in December to move some assets to subsidiary Broader Media; at issue reportedly is whether that was allowed. With the deal being discusses, iHeart would stop further asset sales and not talk to other creditors about debt deals while its creditors agree not to file a notice of default alleging the Broader Media move wasn’t allowed, reported Bloomberg.
Bain and Thomas H. Lee bought what was then Clear Channel in 2008; neither company chose to comment. Neither did creditors represented by law firm Jones Day and investment bank PJT Partners Inc.