WHAT'S HOT
iHeartMedia Reduces Debt Load, Extends Maturity Dates

Published
7 months agoon

iHeartMedia subsidiary iHeartCommunications pushed back the maturity date of much of its debt by three years and reduced its amount of long-term debt by $440 million.
In November, the company’s debt holders were given the opportunity to exchange existing debt for new debt with higher interest — and approximately $4.8 billion, or 92.2%, of them participated in the exchange offer that ended on Dec. 18. The end result is that the “vast majority” of the debt’s maturities have been extended by three years and annual cash interest payments are expected to remain “relatively flat,” according to a Monday (Dec. 23) press release.
Related
iHeartMedia to Save $200M Annually Through Cost Cuts, Embrace of Technology
11/07/2024
Investors welcomed the financial breathing room provided by the exchange offer. Shares of iHeartMedia were up 9.6% to $2.06 in mid-afternoon trading after rising as much as 15.7% to $2.175 earlier in the day. iHeartMedia’s stock price has declined 22.7% year to date.
Ratings agency S&P Global called the debt restructuring “tantamount to a default” because “lenders will receive less than originally promised without offsetting adequate compensation.” Even though the new debt carries a higher interest rate, S&P believes “the rates are well below what the company would be required to pay for new capital under current market conditions and what an issuer with a similar risk profile would have to pay to raise new capital.”
The agency lowered iHeartCommunications’ rating to “SD” (selective default) from “CC” and dropped the issue-level rating on iHeartCommunications’ senior secured and unsecured debt to “D” from “CC.” That said, S&P Global admitted the exchange was beneficial because without the restructuring “there was a realistic possibility of a conventional default.”
During a Nov. 7 earnings call, iHeartMedia CFO Rich Bressler said the exchange would help the company’s net leverage, which is the ratio of long-term debt (less unrestricted cash) to earnings before interest, taxes, depreciation and amortization. iHeartMedia’s net leverage currently stands at 7.2 and Bressler said he expected that number to fall to “about 5.5” by the end of 2025 and further improve to “about 3.2” by the end of 2028.
Glenn Peoples

Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)

BIA – ONE THING (Official Music Video)

Exclusive interview with Hefe OG

Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music

‘KPop Demon Hunters’ Becomes Highest-Charting Soundtrack of 2025

Exclusive interview with Hefe OG

Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music

Exclusive Interview with Bassi Boss

Crucial Flamez: The Guyanese Flame Lighting Up South Florida’s Reggae-Hip Hop Scene

Exclusive interview with Strictly Sour

Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)

BIA – ONE THING (Official Music Video)

Payroll Giovanni – Memory (Official Video)

Lil Bean – Do My Thizzle (Official Video)

BigXthaPlug – Home feat. Shaboozey (Official Music Video)
TRENDING


Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)
Anycia – So Fine feat. Tink, DJ Drama (Official Music Video) 🔔 Subscribe to Anycia’s channel: https://bit.ly/3S7KcwR Listen to Anycia’s...


BIA – ONE THING (Official Music Video)
BIA – ONE THING (Official Music Video) “ONE THING” available at: https://Bia.lnk.to/ONETHING Follow BIA: https://www.instagram.com/bia/ https://www.facebook.com/PrincessTrilla/ Tweets by BIABIA @bia...


Exclusive interview with Hefe OG
Today we caught up with Hefe OG for an exclusive interview. What is your stage name and how did you...


Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music
Lorenzo Holt, Jr.: The Gospel Truth from Music City In an industry filled with personas and polished stage names, one...


‘KPop Demon Hunters’ Becomes Highest-Charting Soundtrack of 2025
The KPop Demon Hunters soundtrack surges 8-3 in its second week on the Billboard 200 albums chart (dated July 12),...