iHeartCommunications extends exchange for 10% notes, early premium

By Susanna Moon

Chicago, Jan. 23 – iHeartCommunications, Inc. has extended the early tender date in the exchange for its outstanding 10% senior notes due 2018 to the newly extended expiration date of midnight ET on Feb. 3.

As a result, holders will receive $1,000 principal amount of new notes in exchange for each $1,000 principal amount of 10% notes regardless of when the notes are tendered in the offer, according to a company announcement.

As announced Dec. 20, iHeartCommunications is offering 11¼% priority guarantee notes due 2021 in exchange for tendered notes.

Before the change, holders who tendered after 5 p.m. ET on Jan. 4, the original early tender date, would have received the exchange amount of $970 principal amount of new notes for each $1,000 principal amount.

iHeartCommunications also entered into an exchange and support agreement on Jan. 23 with holders of about $103.8 million principal amount, or 12.2%, of the notes who have agreed to participate in the exchange.

Tendered notes may no longer be withdrawn as of the original early tender deadline of 5 p.m. ET on Jan. 4.

As previously announced, the new 11¼% notes will be issued as an add-on to the company’s 11¼% notes issued on Feb. 28, 2013. The new notes will be treated as a single class with the same terms, but they will not trade fungibly with the existing notes.

The 11¼% notes are guaranteed on a senior basis by iHeartCommunications’ parent, iHeartMedia Capital I, LLC, and all of iHeartCommunications’ existing domestic wholly owned restricted subsidiaries.

Holders had tendered for exchange $625.2 million, or 73.6%, of its outstanding 10% notes as of midnight ET on Jan. 20, which remains unchanged since the original expiration date of midnight ET on Jan. 19. The exchange offer was then extended until 5 p.m. ET on Jan. 23.

The exchange tally compares with $597.5 million, or 70.3%, of 10% notes tendered as of the original early deadline of 5 p.m. ET on Jan. 4.

The tendered amount so far includes about $503 million of outstanding notes held by subsidiaries of iHeartCommunications.

The exchange agent and information agent is Global Bondholder Services Corp. (866 470-3700, 212 430-3774 or gbsc-usa.com/eligibility/iheartcommunications).

iHeartMedia, Inc., the ultimate parent company of iHeartCommunications, is a media and entertainment company based in San Antonio.

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