iHeartCommunications ups guarantor release for 14% notes to $1 billion

By Susanna Moon

Chicago, Feb. 9 – iHeartCommunications, Inc. said owners of about $1 billion of its 14% senior notes due 2021 have released the guarantors from guarantees of the notes.

The releasing holders have not released the issuer from any obligations, including payment obligations, under the notes indenture, according to a company announcement.

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

These holders released the guarantors from their guarantees in order to improve the issuer’s financial condition, which in turn maximizes the holders’ recoveries from the issuer, according to a previous notice.

The company said on Feb. 1 that it will skip paying the $106 million cash interest due 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 the previous announcement.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.