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IHeart Asks Bondholders for Room to Restructure

Radio giant offers to pay cash to those willing to curtail voting rights.

By Emma Orr, Bloomberg | Updated on November 30, 2016

IHeartMedia Inc., scrambling to stay current on more than $20 billion in debt, is asking bondholders of its iHeartCommunications unit to make it easier for the radio company to pursue a future financial overhaul. The stock rose to its highest level in almost two months.

IHeart wants investors to approve amendments to six sets of notes that would narrow the list of holders eligible to vote on any subsequent changes related to a debt exchange, the company said in a Nov. 28 statement. The change would allow iHeart to exclude holders who aren’t institutional “accredited investors,” as well as those who aren’t U.S.-based or whose inclusion would require iHeart to comply with a specific jurisdiction’s securities laws, the company said. In return, iHeart would pay investors who consent as much as $8 million, with an additional $12 million if a debt swap occurs later.

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