With one week left on a 30-day grace period after skipping a $106 million interest payment, Bloomberg is reporting that senior iHeart lenders “are preparing to pitch a new term sheet to junior bondholders in an attempt to unite all the creditor groups behind a common proposal.”
According to Bloomberg, the senior group, led by Franklin Resources, held a call Tuesday to finalize terms. “The group plans to pitch it this week to holders of iHeart’s 14 percent notes due 2021 and legacy notes.” Bloomberg’s reporting that creditors expect iHeart to file for bankruptcy by the end of the 30-day grace period, and are negotiating with each other, and iHeart for a pre-arranged plan before the 30 days expires. iHeart has been strapped with over $20 Billion in debt for years.
iHeart did not comment for the Bloomberg story.
On February 12 we reported that lenders were proposing $5.5 Billion in a new recapitalized iheart (over 5-7 years), 94.75% equity in iHeart and 100% ownership in iHeart Outdoor. iHeart’s counter-proposal to lenders is $5.5 Billion in new debt, 89.5% equity in iHeart and 100% ownership in iHeart Outdoor. Back on January 10, iHeart was proposing 88.3% equity in the iHeart and 100% ownership in Outdoor.
