A 24-Hour Extension Of iHeart’s Forbearance Extension

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Now playing on iHeartRadio: “Give Me Just A Little More Time.”


The nation’s No. 1 radio broadcasting company has won an additional 24 hours to work with its Consenting Lenders on a $106 million interest payment iHeartMedia voluntarily chose not to pay on February 1.

In an SEC filing made Wednesday morning (3/14), iHeart revealed that it has entered into a new Forbearance Agreement that extends the term of its original agreement by exactly one day: 12:59am Eastern on Thursday (3/15).

The grant from the Consenting Lenders, for a four time, temporarily holds back an acceleration of the obligations under the agreement — in this case, an event of default for iHeart’s failure to make the hefty interest payment on its 14% senior unsecured notes due 2021. It mirrors a filing made Tuesday morning by iHeart.

The company officially had a 30-day grace period to make the interest payment tied to its May 2008 credit agreement with its consenting lenders before an event of default is triggered.

As previously reported, iHeart is actively working with its stakeholders on a restructuring of its capital structure and has been working on a proposed draft restructuring support agreement and related proposed draft restructuring term sheet with its advisors to groups of iHeart noteholders, lenders and equity holders.

This latest extension follows iHeart’s submission to the SEC on Monday (3/12) of revised versions of a draft restructuring support agreement and related draft restructuring term sheet.

The revisions “reflect further negotiations” with the advisors to groups of iHeart’s noteholders, lenders and equity holders.

One of the key changes in the revised restructuring support agreement reflects the allowed participants among iHeart’s consenting stakeholders. In the March 11 revision filed Monday, holders of at least 67% of the aggregate outstanding principal amount of Term Loan Credit Facility Claims and PGN Claims; holders of at least 67% of the aggregate outstanding principal amount of Junior Debt Claims, excluding any Junior Debt Claims held by Company Parties or their Affiliates who are not Consenting Sponsors; and the Consenting Sponsors are considered parties to the agreement.

In the previous agreement, parties were limited to holders of at least half of the aggregate outstanding principal amount of Term Loan Credit Facility Claims and PGN Claims; holders of at least half of the aggregate outstanding principal amount of Junior Debt Claims; and the Consenting Sponsors.