iHeartCommunications forgoes $106 million interest due on 14% notes

By Susanna Moon

Chicago, Feb. 1 – iHeartCommunications, Inc. said it will skip payment of the $106 million of cash interest due Thursday on its 14% senior notes due 2021.

“The company’s board elected not to make the payment in connection with ongoing efforts to proactively and comprehensively address the company’s capital structure,” according to an announcement.

The company will use the 30-day grace period under the note indenture instead and is considering its options, the release noted.

The company said on Jan. 12 that holders of about $670 million of the 14% notes released the guarantors from their guarantees of the notes.

Specifically, the guarantors under the indenture dated June 21, 2013 were released from all obligations, including payment obligations, for the notes held by the releasing holders.

Holders released the guarantees in order to improve the issuer’s financial condition, which in turn maximizes the holders’ recoveries from the issuer, the previous release said.

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

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