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iHeartCommunications to forgo interest due on 11¼% notes, 9% notes
By Susanna Moon
Chicago, March 1 – iHeartCommunications, Inc. will skip paying interest due March 1 on its 11¼% priority guarantee notes due 2021 and on its 9% priority guarantee notes due 2021, according to an 8-K filing with the Securities and Exchange Commission.
The interest due is about $59.1 million for the 11¼% notes and about $78.8 million for the 9% notes.
The company’s board of directors chose to forgo the interest payments “as active discussions continue among its lenders, noteholders and financial sponsors regarding a comprehensive debt restructuring,” the filing noted.
The note terms contain a 30-day grace period to pay the interest before it constitutes an event of default.
The company said on Feb. 1 that it will skip paying the $106 million cash interest due on its 14% senior notes due 2021.
As previously announced, the company is holding a private exchange for five series of priority guarantee notes and senior notes due 2021 and its term loan D and term loan E facilities in connection with a proposed debt restructuring and the related consent solicitation for the notes.
The exchange has been extended many times, most recently to 5 p.m. ET on March 16 from 5 p.m. ET on Feb. 16.
As of 5 p.m. ET on Feb. 14, holders had tendered $38.5 million, or 0.5%, of the existing notes.
iHeartCommunications is a subsidiary of iHeartMedia, Inc., a media and entertainment company based in San Antonio.
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