iHeartMedia Investors Attempt to Restructure 19 Bil. Debt, Dangle Chapter 11
publish date: 2017-04-21
Bain Capital and Thomas H Lee Partners are trying to pull off a high wire act to balance a massive debt load.
Bain Capital and Thomas H. Lee Parters, the equity owners of iHeart Media, are trying to pull off a high wire act to balance its massive $19 billion debt load.
Its trying to restructure some $14 billion of that debt by getting itself more time to pay it off while also getting a reduction it what it owes. It has offered to replace loans and bonds with new facilities and replace old bonds with new discounted notes that mature at a later date, in exchange for also receiving stock shares in its separately publicly traded Clear Channel Outdoor Holdings. Depending on the participation, bond holders would receive their pro-rata share of a pool of about 39% of CCOH’s stock. As of April 20, CCOH had a market capitalization of about $2.05 billion. according to Yahoo finance.
But so far, bond holders have twice turned up their nose at their deal—even with two extensions. So last week the offer was sweetened and the deadline extended to April 21 (today), only to be once again rebuffed by bond holders.