IHeartMedia Gets Lender Consent to Add $500 Million of Debtby
IHeartCommunications Inc., a subsidiary of the struggling media giant IHeartMedia Inc., received approval from its lenders to add $500 million of debt.
The addition will increase the capacity of the company’s largest basket of senior debt to more than $17 billion, the San Antonio, Texas-based company said in a filing Tuesday. The company has more than $21 billion of debt in total. The amendment will be added to the agreement for the 14 percent notes due 2021, allowing the new senior debt to be issued, according to the filing.
The biggest owner of radio stations in the U.S., formerly known as Clear Channel Communications Inc., has been grappling with debt accumulated as part of a leveraged buyout by Bain Capital LLC and Thomas H. Lee Partners in 2008.
Holders of more than $1.4 billion of the 2021 notes agreed to the proposed additional debt. IHeartCommunications will pay $8.6 million to those consenting holders at a rate of $6.10 for each $1,000 principal amount.
The 2021 notes were quoted at 39 cents on the dollar on Tuesday, up from a record low of 20.5 cents in February, and yielded above 46 percent.