Wednesday, July 26, 2017

Bain Capital/Thomas H Lee-Controlled iHeartMedia Continues Stately Descent Into Bankruptcy (IHRT)

As was said back in May:

"This wouldn't really be noteworthy except for the fact IHRT is the largest operator of radio stations in the U.S. and the debt involved is a bit over $20 Billion.".

The stock closed at $2.00 that day. It's trading at $1.25 today, off another nickle and the only thing the company has going on is a desperate attempt to convince some of the debt holders to renegotiate the terms of their paper.

And no one, with the notable exception of the San Antonio Express-News is covering the story.
As an old time commodities trader once said, "Don't trade on what you see on the front pages, trade on what's on page 16 that's going to be on the front pages."

Via BusinessWire (a Berkshire Hathaway company): 

iHeartCommunications, Inc. Announces Extension of Private Term Loan Offers
July 20, 2017 06:45 AM Eastern Daylight Time
SAN ANTONIO--()--iHeartCommunications, Inc. (“iHeartCommunications”) today announced that it is extending the deadline for participation in the private offers (the “Term Loan Offers”) to lenders under its Term Loan D and Term Loan E facilities (“Existing Term Loans”) to amend the Existing Term Loans. The Term Loan Offers have been extended to 5:00 p.m., New York City time, on August 4, 2017. iHeartCommunications is extending the Term Loan Offers to continue discussions with lenders regarding the terms of the Term Loan Offers.

The terms of the Term Loan Offers have not been amended and remain the same as set forth in the Confidential Information Memorandum, dated March 15, 2017, as supplemented by Supplements No. 1 through No. 5 (as so supplemented, the “Confidential Information Memorandum”).

The Term Loan Offers, which are only available to holders of Existing Term Loans, are being made pursuant to the Confidential Information Memorandum, and are exempt from registration under the Securities Act of 1933 (the “Securities Act”). The new securities (the “New Securities”) of iHeartMedia, Inc., CC Outdoor Holdings, Inc., Broader Media, LLC and/or iHeartCommunications being offered in the Term Loan Offers are offered only in reliance on exemptions from registration under the Securities Act. The New Securities have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws...MORE
A few days before the extension of the offer the hometown newspaper, the Express-News reported:

iHeartMedia investors want more collateral, equity
Investors in iHeartMedia Inc. have countered a company proposal to exchange some of its debt for longer maturities by asking for more collateral and equity than originally offered by iHeart, according to details of the negotiations revealed in a securities filing Monday.

The company, which has been trying to restructure $14.6 billion in debt since mid-March, said it still hasn’t reached an agreement with its lenders and bondholders, according to a filing with the Securities and Exchange Commission Monday. But the company is considering the counterproposal....MORE
Bain Capital/Thomas H Lee-Controlled iHeartMedia Probably Facing Bankruptcy (IHRT)