A group of bondholders is planning to reject iHeartMedia Inc.’s latest effort to push out maturities in a setback to the biggest U.S. radio operator teetering under $21 billion in debt, according to
Bloomberg.
Almost half the holders of $347 million of bonds coming due in just over a year have banded together to oppose the debt exchange offered by the company, said one of the people, who asked not to be identified as the information isn’t public. The unsecured creditors intend to notify the company that they won’t take part in the bond swap that would deliver so-called priority-guarantee notes maturing in 2021 to the holders, the person said. The group is working with law firm Paul Weiss and plans to push for better terms.
iHM spokeswoman Wendy Goldberg declined to comment.
The latest discord presents another roadblock in the radio broadcaster’s attempt to address a mountain of borrowings heaped on it from a 2008 buyout by Bain Capital and Thomas H. Lee Partners. The debt-load has complicated Chief Executive Officer Bob Pittman’s attempt to win back audiences who have been lured away by online music-streaming providers such as Spotify.
The company has been pulling all levers to clean up its balance sheet, including a rare maneuver to forgo repaying a portion of debt held by its subsidiary. That surprising move irked some creditors and triggered payouts on $749 million of credit-default swaps.
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