iHeart Successfully Restructures
Yesterday iHeartMedia announced it had successfully completely its debt restructuring, which sets the stage for their emergence from bankruptcy sometime in the next several weeks. Under the plan iHeart reduces its debt from $16.1B before bankruptcy to $5.8B after. One of the biggest parts of the restructure is the divestiture of ClearChannel Outdoor into a separate company – by selling off its stake in the outdoor company iHeart was able to recapitalize its core radio operation.
Of course, iHeart’s CEO Bob Pittman spun the news as the best thing to happen to radio since the birth of Marconi. “We are pleased that iHeartMedia now has a capital structure that matches our exciting operating business. The focused dedication of our employees and the unwavering support of our new owners and advertising partners enabled iHeartMedia to seamlessly complete the restructuring process and reach this final milestone. iHeartMedia enters this next phase of growth as a multi-platform audio company with a vastly improved financial profile. We are well-positioned to continue to innovate and offer cutting-edge technologies, products and services to our audiences and advertisers.”
It’ll be interesting to see what iHeart does with its new lease on life. I’m sure we’ll find out sooner than later.