In a recent 8-K filing with the SEC, iHeart Communications, Inc. the commencement of a consent solicitation to seek the consent of holders of its outstanding Senior Notes due 2021 to a proposed amendment to the indenture governing the Notes. The proposed amendment, if adopted, would amend their senior credit facility to increase the aggregate principal amount by $500,000,000 to $17,270,638,000. Clear Channel Outdoor is a subsidiary of iHeart Communications.

If you are wondering what iHeart’s debt structure looks like, here is a breakdown from their June 30, 2016 10-Q filing:

Total debt, including Senior and Subordinated facilities is $20.2 billion.  As you can see from the breakdown the debt is divided between a number of different agreements.  A significant portion on the senior debt becomes due in 2019.

Insider’s take:  If I am in a Senior Secured position, I most likely, would not be opposed to iHeart’s request to the $500 million increase in debt.  Will provide needed working capital for operations.  However, if I am in a subordinate position, that money moves in ahead of my position and from a subordinate perspective, maybe not such a good thing.  We will continue to keep an eye on new developments as Clear Channel Outdoor continues to be impacted as iHeart looks to sell outdoor assts.