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Distressed Debt: iHeart Again Extends Exchange Offer; PGN Participation just 1.1%

iHeartMedia has again extended the deadline for participation in its distressed-debt exchange, which targets approximately $14.6 billion of its $20 billion debt load.

The media giant once again did not reveal the participation level from term-loan lenders, who as of the April 12 deadline had not agreed to tender any of their holdings.

Participation on aggregate among the targeted priority-guarantee noteholders was reported to be just $86.7 million, or 1.1% of the outstanding existing notes.

At the April 28 deadline, $30.9 million, or 0.4% had been tendered.

iHeart said in a filing with the SEC on Thursday that it has extended the deadline to 5 p.m. EDT on May 26 for term-loan holders and for holders of the company’s priority-guarantee notes and its senior notes due 2021, from May 12 previously.

As reported, iHeart earlier this month sweetened terms on the convoluted distressed-debt exchange offer, which is being made under three separate scenarios.

The term loan only and high-participation scenarios were unchanged, while the low- and mid-participation cases have been improved to $900 per $1,000 tendered, from $880 in the low participation, and $830 in the mid-participation.

Full details of the amended loan and bond offers can be found here.

S&P Global Ratings said it could lower any affected debt to D after the debt exchange is completed. Hypothetically speaking, a default by Clear Channel (Clear Channel changed its name to iHeartMedia in September 2014) would push the current 12-month trailing loan default rate to 2.23%, from 1.49%, and would displace Idearc as the fifth-largest default among constituents of the S&P/LSTA Leveraged Loan Index.

Capital Partners and Thomas H. Lee Partners, which took the company private in August 2008, own approximately $1.2 billion of the existing term loans, according to a March 27 filing by the company.

iHeartMedia operates as a media and entertainment company through three segments: iHeartMedia, Americas Outdoor Advertising, and International Outdoor Advertising. — Rachelle Kakouris

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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