iHeartCommunications, Inc. Announces That It Elected Not to Make Interest Payment on Unsecured Notes and Will Utilize Grace Period Under Indenture
Active discussions among lenders, noteholders, and financial sponsors continue
San Antonio, TX, February 1, 2018 – 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 (the “Notes”) as 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.
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.