iHM Completes Comprehensive Exchange Transactions

RADIO ONLINE | Monday, December 23, 2024

iHeartMedia

iHeartMedia has successfully completed a series of major debt exchange transactions. These exchanges involved the restructuring of various senior notes and term loans under its subsidiary, iHeartCommunications, Inc.

The transactions included exchanging existing debt instruments, such as 6.375% Senior Secured Notes due in 2026, 5.25% Senior Secured Notes due in 2027, and several others, for new debt instruments with later maturity dates and different interest rates. The new issuances, due between 2029 and 2031, feature rates ranging from 7.000% to 10.875%.

The exchange was notably robust, with approximately $4.8 billion, or 92.2% of the aggregate principal amount of the existing debt, participating in the exchange offers which concluded at 9am ET on December 18.

This strategic financial maneuver has allowed iHeartMedia to extend the maturities of most of its debt by three years while keeping its annual net cash interest payments relatively stable. More importantly, the company has reduced its total debt by over $440 million, significantly strengthening its capital structure.

The completion of these transactions provides iHeartMedia with enhanced flexibility to execute on its strategic and business initiatives, securing a more stable financial pathway forward.