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iHeartMedia Completes Voluntary $250 Million Loan Repayment.

iHeartMedia’s wholly-owned subsidiary iHeartCommunications has completed the previously announced voluntary prepayment of $250 million, which is a portion of both its $2,070 million Term Loan and its $446 million Increment Term Loan at a new rate of LIBOR + 3.35%.

The prepayment was applied to the Term Loan and the Incremental Term Loan on a pro-rata basis, with $206 million being used to pay the Term Loan and $44 million to repay the incremental loan. The interest rate on the remaining $402 million balance of the Incremental Term Loan was lowered by 100 basis points, including the impact of a 25-basis points LIBOR floor reduction. The prepayment and the new rate are expected to save iHeartMedia approximately $13 million in interest expense on an annualized basis.

When the company announced plans to prepay $250 million of its loans last month, Chairman and CEO Bob Pittman said the debt pay down demonstrates “the encouraging momentum we are seeing across all of our businesses… At iHeart, we are committed to deleveraging and strengthening our balance sheet, reducing interest expense and further increasing our free cash flow while still maintaining ample liquidity.”

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