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iHeartCommunications wraps offer to issue 11¼% notes due 2021 in swap for 10% notes
By Susanna Moon
Chicago, Feb. 6 – iHeartCommunications, Inc. said it took in tenders for $737.9 million of its outstanding 10% senior notes due 2018 by the end of the exchange offer at midnight ET on Feb. 3.
As announced Dec. 20, iHeartCommunications is offering 11¼% priority guarantee notes due 2021 in exchange for tendered notes.
iHeartCommunications expects to issue about $476.4 million principal amount of new notes, with settlement set for Feb. 7, including $241.4 million principal amount of new notes to its subsidiaries, according to a company announcement.
The exchange amount includes $503 million of notes held by subsidiaries of iHeartCommunications.
After the exchange, about $373.6 million of the notes will remain outstanding.
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 were tendered in the offer, according to a previous company announcement.
As announced Jan. 23, the company extended the early tender date in the exchange to the expiration date.
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.
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 was 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 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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