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iHeart Radio (formerly Clear Channel) has 60 days to pay off $6 billion in debt

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D

Dalek

Member
http://www.dispatch.com/content/sto...of-radio-stations-faces-mountain-of-debt.html

I heard Howard Stern talking about this the other day. That 6 Billion is just one payment-they're supposedly in over $20 billion dollars in debt-which seems unfathomable to me.

The owner of seven central Ohio radio stations — iHeart Media — is battling a group of debt holders who are giving the company 60 days to repay $6 billion in loans.

San Antonio-based iHeart is the nation’s largest owner of radio stations, including central Ohio stations WTVN (610 AM), WCOL (92.3 FM), WNCI (97.9 FM), WXZX (105.7 FM), WYTS (1230 AM), WODC (93.3 FM) and WZCB (106.7).

According to filings with the U.S. Securities and Exchange Commission, the group of creditors contends that iHeart defaulted on its loans in December when it transferred shares from subsidiary Clear Channel Outdoor Holdings to another subsidiary, Broader Media. That creditor group includes Canyon Capital Advisors, D.E. Shaw, Davidson Kempner and Franklin Advisors.
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If iHeart defaults on the loans, it likely would be forced to restructure, file bankruptcy or take some other action, said longtime radio reporter Tom Taylor, who publishes an industry newsletter, Tom Taylor Now.

“Right now, they’re fighting over the money that’s there,” Taylor said. “I suspect eventually it’s going to be a restructuring where you exchange some debt for equity.”
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As of Dec. 31, iHeart had about $360 million in cash. Meanwhile, loans maturing in 2016 total $193 million; in 2017, $230 million; in 2018, $930 million; and in 2019, $8.4 billion.

iHeart Media was formerly known as Clear Channel. The company changed its name in September 2014.
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http://www.wsj.com/articles/iheartmedia-default-fight-set-to-go-to-trial-1459973532
The Texas lawsuit comes as iHeartMedia begins to grapple with ways to address its massive debt load that totals $20.6 billion, including $8.3 billion maturing in 2019. The debt load largely stems from a 2006 leveraged buyout led by Bain Capital Partners LLC and Thomas H. Lee Partners LP.
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D

Data West

coaches in the WNBA
They fucked up the streaming options for American Truck Sim and internet radio streaming at large


so good
 
F

FyreWulff

Member
Holy crap, I didn't know iHeart was ClearChannel's new name.

legend166 said:
How does a radio station even get in that much debt? Smells rotten.
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Deregulation meant that ClearChannel basically bought everyone. They were able to get into so much debt because they're so goddamn big that they practically ARE radio.
 
S

Slayven

Member
FyreWulff said:
Holy crap, I didn't know iHeart was ClearChannel's new name.



Deregulation meant that ClearChannel basically bought everyone. They were able to get into so much debt because they're so goddamn big that they practically ARE radio.
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Me either I thought they were just a gutter tier streaming service.
 
R

Roland_Gunner

Member
legend166 said:
How does a radio station even get in that much debt? Smells rotten.
Click to expand...

Answered in the OP:

The Texas lawsuit comes as iHeartMedia begins to grapple with ways to address its massive debt load that totals $20.6 billion, including $8.3 billion maturing in 2019. The debt load largely stems from a 2006 leveraged buyout led by Bain Capital Partners LLC and Thomas H. Lee Partners LP.

Classic leveraged buyout where a private equity firm buys a company with its own debt. This was back in '06 when banks would lend money to anyone.
 
S

Stumpokapow

listen to the mad man
Not to make light of what could surely be an acrimonious job loss for many people, but does this mean some of the godawful fucking billboards that clutter up every square inch of America will go away?
 
D

Data West

coaches in the WNBA
Hip Hop said:
Wait, what happened to the stations in American truck simulator?

Haven't played since the launch days.
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Nothing since launch. Internet radio as a whole has changed drastically because of IHeartRadio. Which is why you rarely find just stand-alone streams of radio stations from across the country these days. Because they're all locked behind IHeartRadio.
 
K

Koomaster

Member
Fuuuuu! They own the most popular station in my town. Hope nothing happens to it.
I'll never listen to radio again if I lose SteveFM! v___v
 
S

Saganator

Member
Wow, I had no idea iHeart was Clear Channel.

The Texas lawsuit comes as iHeartMedia begins to grapple with ways to address its massive debt load that totals $20.6 billion, including $8.3 billion maturing in 2019. The debt load largely stems from a 2006 leveraged buyout led by Bain Capital Partners LLC and Thomas H. Lee Partners LP.
Click to expand...

So basically, Mit Romney killed Clear Channel?
 
D

Deleted member 1159

Unconfirmed Member
Bain Capital involved in some fucking shenanigans? I'm shocked. Shocked, I say. Shocked.

I'm shocked.
 
E

explodet

Member
Time for the mother of all telethons!
... except this is radio, and Wikipedia says the equivalent term is "radiothon". Ew.
 
K

KevinRo

Member
Stumpokapow said:
Not to make light of what could surely be an acrimonious job loss for many people, but does this mean some of the godawful fucking billboards that clutter up every square inch of America will go away?
Click to expand...

... the only time I see a billboard is when I drive down i95 and see the giant blue fucking JR signs.

In all seriousness, I probably only see like a max 2 billboards in the major city I live near.
 
D

Dennis

Banned
I can't fathom how some damn radio stations can be 20 billion US dollars in debt.

The don't even have to hire attractive people, it is radio!
 
B

blame space

Banned
If they hadnt written the decline, the third go of the harmony at the end of that song would have been NOFX's greatest contribution to music.
 
J

jellies_two

Member
Four quarters ending September 2015:

They made 1.1 billion in profit before paying their credit card bills and selling stuff.
The sold assets and stuff and made $600m more
they paid their interest bill, of 1.75 billion, and were left 89 million in the red!

In other words .. they are screwed, because their interest expense on their debt is 40% higher than their operating profit ongoing, and they are only surviving by selling off assets.

Their total debt did not really change from the previous year - it remained at 20 billion.
 
T

TAJ

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
The schadenfreude for Howard must be off the charts.
 
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