iHeartMedia has announced an extension of its exchange offers and consent solicitations for outstanding debt, pushing the deadline to December 18. This initiative has currently achieved participation from debt holders representing 92% of iHeart’s existing debt.
The debt restructuring plan extends repayment deadlines to 2030, with an average interest rate increase of 2.5%.
Along with the extension, the original requirement for 95% participation has been reduced to a minimum of 92%, aligning with the current participation rate. The offers involve iHeartCommunications’ secured and unsecured notes, including 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.
iHeart’s advisors include PJT Partners and Perella Weinberg Partners, with legal counsel from Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP.
