With its stock price falling from $2.16 per share on May 8 to 86 cents per share yesterday, a number of iHeartMedia creditors have retained financial adviser Evercore and law firm Milbank to advise them ahead of debt payments due starting in May 2026 reports Bloomberg.
The report notes that of iHeart’s current $5.2 billion of debt, a $1.8 billion term loan is due in 2026 and trades at 77.5 cents on the dollar, while an $800 million 6.375% note that matures in 2026 was trading at around 70.75 cents. Bloomberg states the lenders are worried about the company’s drop in revenue “at a time when other indebted media companies are pushing ahead with debt restructurings”.
iHeart’s exit from Chapter 11 bankruptcy protection in 2019 lowered the company’s debt from $16.1 billion to $5.75 billion with much of the debt originating from the leveraged $17.9 billion purchase of then Clear Channel Communications by Bain Capital Partners and Thomas H. Lee Partners in 2008.
This story first appeared on radioinsight.com