In a Tuesday afternoon press release, iHeartMedia announced a special committee of independent directors has decided not to repay $57.1 million in 5.50% senior notes that are due Thursday held by affiliate Clear Channel Holdings. While the $192.9 million of 2016 legacy notes held by other holders will be paid in full at maturity, the $57.1 million balance held by affiliate CCH will remain outstanding. Here’s what the company told its employees…
In a memo to employees, iHeart executives said what was announced today should not disrupt the day-to-day operations of the company at all. “This process is very complex, and there are many players — and no matter what we do at each step, there will be some debtholders who think we’re making good moves and others who think we are not. We believe we are taking the right actions to strengthen our company for the future and protect what we have built, even though some of those who disagree with our strategy will certainly create noise or confusion in the press. We greatly appreciate your patience as we work through this important process, and we apologize in advance for any noise you may hear as the process unfolds. We think we’ll all be happy with the eventual outcome.”
Company spokesperson Wendy Goldberg says, “Over the past five years, we have transformed iHeartMedia into a leading 21st century media and entertainment company – one that includes some of the industry’s most successful platforms across broadcast radio, digital, outdoor, mobile, social, and live events. The strength in our operating business gives us the ability to deal with our capital structure, and we are focused on taking additional steps in order to support the long-term growth of this unique multi-platform company.”
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