• iHeart Update Heading to the Weekend

    Since details are moving very quickly on Clear Channel Outdoor’s parent company iHeartMedia, Inc., Insider wanted to provide a couple of updates of interest before the weekend.

    In two separate 8-K Filings, iHeart Media shared:

    1.  The Board of Directors has elected not to make interest payments due on March 1, 2018 of approximately $59.1 million with respect to its outstanding 11.25% Priority Guarantee Notes due 2021 and of approximately $78.8 million with respect to its outstanding 9.0% Priority Guarantee Notes due 2021.  Reasons citied were the active discussions continuing among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring.
    2. On February 23, 2018, the Compensation Committee of the Board of Directors of iHeartMedia, Inc. approved bonus payments for the following named executive officers:
      • Robert W. Pittman, Chairman and CEO – 2018 Quarterly target bonus of up to $2.325 million.
      • Richard J. Bressler, President, COO and CFO -2018 Quarterly target bonus of up to $1.325 million.
      • Robert H. Walls, Jr., the Company’s Executive VP, General Counsel and Secretary -2018 Quarterly target bonus of up to $225K.

    Insiders Take – Today’s news had a significant amount of speculation that a bankruptcy filing is imminent, perhaps over the weekend. The non-payment of interest noted above is in addition to last months payment default which has not been cured in the required 30 days. No point making the payments if you are headed into bankruptcy.

    As for the bonus package for the Pittman, Bressler and Walls, the Board hedged their bets by including a clause where each officer is required to repay the after-tax value of the Quarterly Bonus if any of them were to be terminated for “cause” or voluntarily resign without “good reason” before March 31, 2019.

    There is a significant amount of interest with our readers so we will continue to keep you updated as things move along.



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