iHeartMedia: A Closer Look at the Secured 2028s

Yesterday, iHeartMedia, Inc. (“iHeart”) filed an 8-K (the “8-K”) disclosing that is has launched exchange offers for each series of its outstanding bonds and loans, pursuant to a Transaction Support Agreement (the “TSA”) that contemplates two alternative transaction structures.1

On November 7, we published iHeartMedia: Initial Impressions on the TSA, where we explained the two alternative transaction structures. We refer to this report as the “Previous Report”, and assume that all readers of this report have read the Previous Report.

In today’s 8-K, the Company disclosed that as of November 14, 2024, holders representing approximately 40.9% of the Secured 2028s have agreed to participate and tender and provide consent with respect to the Secured 2028s. Accordingly, in this report we are only focusing on the drop-down transaction structure, because the Company does not currently have the TSA support necessary to implement the comprehensive uptiering transaction.2 We refer to this drop-down transaction structure as the “Drop-Down Transaction.”