iHeartCommunications scraps restructuring exchange

By Susanna Moon

Chicago, March 15 – iHeartCommunications, Inc. said it terminated the private exchange for five series of priority guarantee notes and senior notes due 2021 as well as for 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 offers and the term loan offers were terminated in connection with the company’s voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code announced Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The offers were set to end at 5 p.m. ET on March 16 after being extended numerous times, most recently from 5 p.m. ET on Feb. 16. The offers were previously extended from Jan. 19, Jan. 5, Dec. 22, Dec. 8, Nov. 24, Nov. 10, Oct. 20, Sept. 29, Sept. 8, Aug. 18, Aug. 4, July 21, July 7, 2017, June 23, 2017, June 9, 2017, May 26, 2017, May 12, 2017, April 28, 2017, April 21, 2017 and April 14, 2017, the last of these being the original expiration.

As of 5 p.m. ET on Feb. 14, holders had tendered $38.5 million, or 0.5%, of the existing notes, up from $36.7 million, or 0.4%, of the existing notes as of 5 p.m. ET on Jan. 17, $34.0 million, or 0.4%, as of 5 p.m. ET on Jan. 3 and Dec. 20 and up from $30.3 million, or 0.4%, as of 5 p.m. ET on Dec. 6.

The response rate for the loans was never disclosed.

The company previously said the extensions would allow it to continue discussions with holders of its notes and loans.

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

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