Is The Sixth Time The Charm For iHeart?

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If there was a song to describe the current state of iHeartCommunications’ exchange offers, Daft Punk’s “One More Time” may be a fitting choice.


The arm of iHeartMedia on May 25 said that it was extending a somewhat complex series of private offers to its bondholders— exchange offers and consent solicitations for each issue of existing notes originally set to expire at 5pm Eastern on April 14. A series of extensions moved that date to May 26, and then to today (6/9) at 5pm Eastern.

It’s now been extended another two weeks as iHeart continues discussions with note holders regarding the terms of the exchange offers, iHeart says, and to continue discussions with lenders under its Term Loan D and Term Loan E facilities.

The deadline to withdraw tendered existing notes in the exchange offers and revoke consents in the Consent Solicitations has also been extended to June 23 at 5pm Eastern.

Why has iHeart extended the expiry date by more than two months?

Just 0.6% of the outstanding existing notes had been tendered.

That’s not a good sign, as an aggregate amount of approximately $46.4 million of existing notes have actually been tendered into the exchange offers.

As of 5pm on May 24, an aggregate amount of approximately $47.1 million of the existing notes had been tendered into the exchange offers.

Thus, the percentage of the outstanding existing notes tendered hasn’t moved in more than two weeks.

 

A key reason why more outstanding existing notes have not been tendered could be iHeart’s reluctance to renegotiate. It confirmed today that the terms of the exchange offers and consent solicitations have not been amended and remain the same as they did on April 14.

 

iHeart shares were unchanged at $1.65 per share as of 2:30pm Eastern on Friday.


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