On March 15, iHeartCommunications commenced private offers to eligible lenders under its Term Loan D and Term Loan E facilities to amend the existing term loans and exchange them for new securities of iHeartMedia and CC Outdoor Holdings and/or iHeart Communications.
Just after 9pm Eastern on April 5, the company confirmed that the term loan offers will expire at 5pm Eastern on April 14. This is a one-week extension.
At the same time, iHeart is extending by one week — to April 21 — the private offers to holders of certain series of iHeartCommunications’ outstanding debt securities to exchange the existing notes for new securities of CC Outdoor Holdings, iHeartCommuncations, and iHeartMedia.
Securities of Broader Media LLC are not part of this exchange offer.
Only qualified institutional buyers are eligible to participate in the exchange.
Why is this being done?
As of 5pm Eastern on Tuesday (4/4), no existing notes had been tendered into the exchange offers.
Without explanation as to why this was the case, iHeart is extending the exchange offers and consent solicitations to give holders additional time to review the recent supplements to an Offering Circular and to consider the results of the private offers now set to expire on April 14.
While some radio industry professionals may not fully understand the nature of the exchange offers, investors with IHRT shares — the “stub” of iHeart that is not owned by private equity partners — didn’t seem too happy with the fact that zero notes had been exchanged as of Tuesday afternoon.
As of 3:30pm Eastern on Thursday (4/6), iHeartMedia shares were off 7.7%, to $3 a share, on higher-than-average volume of 64,821 shares.
iHeart trades on the OTC’s Pink Open Market, which offers trading in a wide spectrum of securities through any broker. “With no minimum financial standards, this market includes foreign companies that limit their disclosure, penny stocks and shells, as well as distressed, delinquent, and dark companies not willing or able to provide adequate information to investors,” OTC says. “As Pink requires the least in terms of company disclosure, investors are strongly advised to proceed with caution and thoroughly research companies before making any investment decisions.”