As RBR+TVBR first reported on November 18, the company helmed by CEO Bob Pittman and COO/CFO Rich Bressler seeks more time to repay its lenders by proposing to push out its repayment dates by at least three years — and by doing so at a noticeably higher interest rate.
Now, iHeartMedia has announced a small extension of its exchange offers and consent solicitations for outstanding debt.
Originally, the exchange offers and consent solicitation were to expire at 5pm Eastern on December 16. Now, the deadline is December 18.
At present, the initiative has achieved participation from debt holders representing 92% of iHeart’s existing debt, the company reported late Tuesday. That’s good, as it stood at 85.4% as of November 14 and the original requirement for 95% participation was reduced to 92%.
Of consideration to iHeartMedia lenders is the quest by Pittman, Bressler and the C-Suite to push the company’s roughly $800 million in notes due in 2026 to 2029, while hiking its interest on this series of debt from 6.375% to 9.125%. The principal would also balloon to either $935 million or $940 million.
There’s more — The iHeartCommunications, Inc. notes due 2027 would see interest jump from 5.25% to 7.75%, pushing repayment to 2030; the notes due 2028 would experience a soaring interest rate, moving from 4.75% to 7%, with repayment due in 2031.
Lastly, the unsecured senior notes would see an increase in the interest rate from 8.375% to 10.875%, while the repayment of this debt is pushed to 2030.
Specifically, the offers involve 93.8% of 2026 Secured Notes, 99.1% of 2027 Secured Notes, 44.3% of 2028 Secured Notes, and 92.1% of 2027 Unsecured Notes.
Other updates include an additional $10 in principal for every $1,000 tendered for eligible holders, alongside the early tender premium. Certain consent requirements for specific notes have also been amended, and covenants in the new notes have been adjusted to allow for greater flexibility.
For $800 million in 6.375% Senior Secured Notes due 2026, the Comprehensive Option includes $940 in new 9.125% Communications 1L Notes due 2029 and $50 in cash per $1,000 of existing notes. The Alternative Option offers $935 in 9.125% Entertainment I 1L Notes due 2029, $5 in new 7.750% Alternative Communications 1L Notes due 2030, and $50 in cash.
The iHeartMedia advisors include PJT Partners and Perella Weinberg Partners, with legal counsel from Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP.
— Reporting by Adam R Jacobson in Boca Raton, Fla.; and Cameron Coats in Troy, N.Y.
