Why Did iHeart Clarify The Point Of Its Bondholder Ask?


In an announcement made early Monday (11/28)iHeartCommunications said it has commenced six separate consent solicitations, each seeking bondholder approval of proposed amendments to each of the indentures governing the notes.

While the news seemed pretty clear, iHeart on Tuesday clarified the purpose of the consent solicitations in a press release issued via BusinessWire.

At question is a proposed amendment to the indentures governing its five series of priority guarantee notes and its senior notes due 2021 that were launched on Monday.

In its follow-up statement, iHeart explained that amendments to each of the indentures would allow it to conduct future exchange offers that involve bondholder approval without registering them under the U.S. Securities Act of 1933, or with any other jurisdiction.

This would provide iHeart, it said, with the flexibility to make exchange offers to all bondholders  — including non-U.S. persons — without having to incur a delay and expense associated with registering the debt or equity securities offered in such exchange offers with the Securities & Exchange Commission.

Bondholders have until 5 p.m. Eastern on Dec. 7 to agree to or nix the iHeart plan.