Lenders Want Nearly All Of iHeart & CCO, Plus A Chapter 11 Option

A late report yesterday shed some detail on what the major lender’s are requesting from iHeart Media in their debt restructuring negotiations.  Insider has expected the debt holders would be aggressive and would pursue a significant equity position in both iHeart and Clear Channel Outdoor.

Here is what the lender group, led by Franklin Resources, is requesting in their debt for equity discussions:

  • 87.5% equity in a recapitalized iHeart Media
  • 87.5% of iHeart’s 89.5% direct ownership in Clear Channel Outdoor
  • An option for a pre-packaged Chapter 11 filing

Insider views iHeart as having limited options available to them with over $20 billion in debt and significant maturities coming over the next few years.  The second largest broadcaster in the market, Cumulus Media, who also have debt issues, chose to file Chapter 11 this week.  iHeart could file Chapter 11 which will take time and a ton of legal fees, but in the end, the outcome may be the same.

 


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