iHeartMedia, Inc. (NASDAQ:IHRT) announced today that its subsidiary, iHeart Operations, Inc., repurchased and cancelled all of its 60,000 outstanding shares of Series A Perpetual Preferred Stock, utilizing cash on hand.
“We are pleased to have voluntarily repurchased the full balance of our $60 million preferred stock, demonstrating our commitment to strengthening our balance sheet and increasing free cash flow, while still maintaining ample liquidity,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “Repurchasing early allows us to realize interest savings, exit the most restrictive instrument on our balance sheet, and continue to reinforce iHeart’s commitment to improving our capital structure. This action continues to demonstrate our confidence in our business moving forward.”
The cash repurchase price for each Series A Perpetual Preferred Stock is $1,000.00, plus a premium equal to the remaining dividends required to be paid through the optional redemption date of May 1, 2022 (the “Redemption Date”) discounted at a negotiated rate. This results in an aggregate redemption amount of $64.35 million to be paid to the holders of the $60 million Series A Perpetual Preferred Stock.
This story first appeared on radioinsight.com