iHeartMedia, Inc. Announces Completion of Voluntary $250 Million Prepayment of Term Loan Facilities and Successful Repricing of Incremental Term Loan

Rhea-AI Summary

iHeartMedia (Nasdaq: IHRT) announced the successful prepayment of $250 million of its debt, including $206 million from its Term Loan and $44 million from its Incremental Term Loan. This move lowers the interest rate on the remaining Incremental Term Loan balance to LIBOR + 3.25%, resulting in an annual interest expense savings of approximately $13 million. The prepayment reflects iHeartMedia's strategy to manage its debt more effectively following its emergence from Chapter 11. The company continues to be a leader in audio media, reaching over 250 million people monthly.

Positive

• Successfully prepaid $250 million of debt, improving financial stability.
• Annual interest savings of approximately $13 million from debt repricing.
• Lowered interest rate on remaining Incremental Term Loan by 100 basis points.

Negative

• None.

iHeartMedia, Inc. (Nasdaq: IHRT) (“iHeartMedia”) announced today that its indirect, wholly-owned subsidiary, iHeartCommunications, Inc., has successfully completed the previously announced voluntary prepayment of a portion of both its $2,070 million Term Loan and its $446 million Incremental Term Loan, utilizing cash on hand, while concurrently repricing the Incremental Term Loan at a new rate of LIBOR + 3.25%.

The prepayment was applied to the Term Loan and the Incremental Term Loan on a pro-rata basis, resulting in $206 million being used to prepay the Term Loan and $44 million to prepay the Incremental Term 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.

About iHeartMedia, Inc.

iHeartMedia, Inc. [Nasdaq: IHRT] is the leading audio media company in America, reaching over 250 million people each month. It is number one in both broadcast and digital streaming radio as well as podcasting and audio ad tech and includes three business segments: The iHeartMedia Multiplatform Group; the iHeartMedia Digital Audio Group; and the Audio and Media Services Group. Visit iHeartMedia.com for more company information.

Forward-Looking Statements

Certain statements herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases “guidance,” “believe,” “expect,” “anticipate,” “estimates,” “forecast” and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about the expected reduction in annual interest expense, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other important factors, some of which are beyond our control and are difficult to predict. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to: risks related weak or uncertain global economic conditions; the impact of the COVID-19 pandemic; impact of iHeartMedia’s substantial indebtedness; impact of acquisitions, dispositions and other strategic transactions; and risks associated with iHeartMedia’s emergence from the Chapter 11 Cases. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date hereof. Additional risks that could cause future results to differ from those expressed by any forward-looking statement are described in the Company’s reports filed with the U.S. Securities and Exchange Commission, including in the section entitled “Risk Factors” of iHeartMedia, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

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FAQ

What recent financial move did iHeartMedia (IHRT) make?

iHeartMedia completed a prepayment of $250 million on its debt, including its Term Loan and Incremental Term Loan.

How much will iHeartMedia save in interest expenses per year?

iHeartMedia expects to save approximately $13 million in interest expenses annually.

What is the new interest rate for iHeartMedia's Incremental Term Loan?

The new interest rate for iHeartMedia's remaining Incremental Term Loan is LIBOR + 3.25%.

How much debt did iHeartMedia prepay from its Term Loan?

iHeartMedia prepaid $206 million from its Term Loan.

What is the significance of iHeartMedia's debt prepayment?

The debt prepayment is part of iHeartMedia's strategy to enhance financial management and reduce interest costs.