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iHeartMedia seeks court approval for $450 million DIP facility
New York, May 21 – iHeartMedia, Inc. asked for approval for a $450 million debtor-in-possession financing facility from the U.S. Bankruptcy Court for the Southern District of Texas.
The facility will be structured as an asset-based revolving credit facility and will also have a $100 million accordion.
iHeartMedia will primarily use the DIP facility to refinance its pre-bankruptcy asset-based borrowings, saving interest payments of $12 million to $20.7 million through December 2018, according to the request to the court.
On emergence from bankruptcy, the DIP facility will be converted to an exit facility.
The facility will mature 12 months from closing, or after 15 months if the plan of reorganization has not been completed due the lack of regulatory approvals.
Interest will be at Libor plus 225 basis points, and there will be a 50 bps commitment fee.
Citibank is the administrative agent.
iHeartMedia is a media and entertainment company based in San Antonio. The company filed bankruptcy on March 15 under Chapter 11 case number 18-31274.
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