According to The Wall Street Journal, the amendment would allow iHeartCommunications to exclude certain noteholders, including those who aren’t institutional accredited investors, from offers to consent, waive or amend note provisions.
The consent solicitation includes senior notes due 2021 and five series of priority guarantee notes.
IHeartMedia has been grappling with a heavy debt load largely stemming from its $26 billion buyout led by Bain Capital LLC and Thomas H. Lee Partners LP in 2008.
As traditional radio was threatened by competitors including streaming and satellite radio, iHeartMedia’s digital moves have included a popular app and subscription services.
IHeartMedia said in June that it was negotiating the terms of an exchange agreement with senior debtholders. The company has had disputes with some noteholders including a disagreement over a stock transfer to a subsidiary called Broader Media LLC.
iHeartMedia ranks as the biggest U.S. radio station owner. Traditional broadcasters have been struggling with high debt loads and losses as online music services poach away audiences, advertisers and revenue. Ad revenue fell 3 percent for traditional radio stations in 2014 and 2015, while digital ad revenue grew 9 percent and 5 percent in those years, according to the Radio Advertising Bureau.
iHM is grappling with debt accumulated since 2008, when the company was acquired by private-equity giants Bain Capital Partners LLC and Thomas H. Lee Partners LP. Almost $8.5 billion is slated to come due over the next three years, according to data compiled by Bloomberg.
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