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iHeart Lenders Said to Oppose Exchange Offer in Messy Debt Saga

  • Move is part of company efforts to address $21 billion in debt
  • Creditors holding out for better terms to exchange 2018 notes
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A group of bondholders is planning to reject iHeartMedia Inc.’s latest effort to push out maturities in a setback to the biggest U.S. radio operator teetering under $21 billion in debt, according to people with knowledge of the matter.

Almost half the holders of $347 million of bonds coming due in just over a year have banded together to oppose the debt exchange offered by the company, said one of the people, who asked not to be identified as the information isn’t public. The unsecured creditors intend to notify the company that they won’t take part in the bond swap that would deliver so-called priority-guarantee notes maturing in 2021 to the holders, the person said. The group is working with law firm Paul Weiss and plans to push for better terms.