Skips Interest Payment
iHEARTCOMMUNICATIONS’ Board of Directors has elected not to make a cash interest payment of $106 million, due FEBRUARY 1st, 2018, to holders of its 14% senior unsecured notes due 2021 as active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring.
iHEARTMEDIA insists it has the cash on hand, but the Board elected not to make the payment in connection with ongoing efforts to “proactively and comprehensively address iHEART’s capital structure.”
The decision will not trigger an event of default under the indenture as iHEART will utilize a 30-day grace period under the indenture during which it retains the right to make the interest payment to the holders of the Notes and remain in compliance with the indenture governing the Notes.
The Board is considering options as part of its strategy to achieve a comprehensive restructuring of iHEART’s debt.
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