iHM Withdraws Previously Announced Financial Guidance

RADIO ONLINE | Thursday, March 26, 2020

iHeartMedia

iHeartMedia is withdrawing its previously announced financial guidance for the fiscal year ending December 31, 2020 due to heightened uncertainty related to the novel coronavirus pandemic (COVID-19), its impact on the operating and economic environment and related, near-term advertiser spending decisions. The company also announced Thursday that its indirect subsidiary, iHeartCommunications drew $350 million under its senior secured asset-based revolving credit facility as a precautionary measure to preserve financial flexibility.

President and COO Rich Bressler said, "iHeartMedia had a strong January and February before the effects of COVID-19 began to unfold into a global pandemic in early March. The challenges that COVID-19 has created for advertisers and consumers has impacted iHeart's revenue in recent weeks, creating a less clear business outlook in the near term.

"To maintain maximum financial flexibility during this period, we have drawn $350 million on our $450 million senior secured asset-based revolving credit facility," Bressler explained. "We believe that the additional funds from drawing on our...facility, in combination with our cash balance, provides us with a prudent level of liquidity at this time." The company said the proceeds "will be available if needed to fund iHeartCommunications' future working capital requirements or other general corporate purposes.

"We fully appreciate the unprecedented challenges posed by this crisis, however, we remain confident in our business, our employees and our strategy."

As of December 31, 2019, iHeartCommunications had a facility size of $450 million, had no outstanding borrowings and had $48.1 million of outstanding letters of credit, resulting in $401.9 million of availability.