iHeartMedia has finalized a series of debt exchanges and consent solicitations aimed at improving its financial stability through 2029. The transactions were fully completed on December 20, exchanging existing notes and loans for new debt with updated terms.
The new debt instruments include updated interest rates and repayment terms. For instance, the new 2029 notes carry a 9.125% interest rate, while other new notes have rates ranging from 7.0% to 10.875%. The average rate hike across these exchanges remained unchanged from the original release at 2.5%.
Maturity dates for these debts extend into 2029, 2030, and 2031, providing the company with additional time to manage its obligations.
The transactions also updated the company’s debt agreements, simplifying covenants and eliminating certain prepayment requirements. These adjustments provide greater operational flexibility while allowing iHeart to redeem notes early under specific conditions, such as asset sales or changes in control.
Each new debt issuance is secured by liens on iHeart assets, with lien priorities varying by debt type. These changes were achieved through updates to intercreditor agreements that clarify the rights of creditors.
In a statement, iHeartMedia representatives commented: “This successful restructuring represents a significant step forward in our ongoing efforts to optimize our capital structure and extend our financial flexibility.”
iHeart’s advisors include PJT Partners and Perella Weinberg Partners, with legal counsel from Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP.
