iHeartMedia Board Foregoes Cash Interest Payment

iHeartCommunications, Inc. today announced that its Board of Directors has elected not to make a cash interest payment of $106 million, due February 1, 2018, to holders of its 14% senior unsecured notes due 2021.

iHM cited active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring.

The Company’s Board elected not to make the payment in connection with ongoing efforts to proactively and comprehensively address the Company’s capital structure.

According to iHM, the decision will not trigger an event of default under the indenture as the Company will utilize a 30-day grace period under the indenture during which it retains the right to make the interest payment to the holders of the Notes and remain in compliance with the indenture governing the Notes.

The Board is considering options as part of its strategy to achieve a comprehensive restructuring of the Company’s debt.