iHeartMedia, Inc. Announces Voluntary Repurchase of All Series A Perpetual Preferred Stock

Rhea-AI Summary

iHeartMedia, Inc. (NASDAQ:IHRT) has successfully repurchased and canceled all 60,000 shares of its Series A Perpetual Preferred Stock for $60 million, enhancing its balance sheet and increasing free cash flow. This strategic move, which involved a total cash outlay of $64.35 million, reflects the company's commitment to improving its capital structure and reducing interest expenses. The buyback demonstrates iHeart's confidence in its business trajectory and maintains liquidity for future investments.

Positive

• Repurchased $60 million of Series A Perpetual Preferred Stock, enhancing balance sheet.
• Increases free cash flow and reduces interest expenses.
• Demonstrates company confidence in future business performance.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- iHeartMedia, Inc. (NASDAQ:IHRT) announced today that its subsidiary, iHeart Operations, Inc., repurchased and cancelled all of its 60,000 outstanding shares of Series A Perpetual Preferred Stock, utilizing cash on hand.

“We are pleased to have voluntarily repurchased the full balance of our $60 million preferred stock, demonstrating our commitment to strengthening our balance sheet and increasing free cash flow, while still maintaining ample liquidity,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “Repurchasing early allows us to realize interest savings, exit the most restrictive instrument on our balance sheet, and continue to reinforce iHeart's commitment to improving our capital structure. This action continues to demonstrate our confidence in our business moving forward.”

The cash repurchase price for each Series A Perpetual Preferred Stock is $1,000.00, plus a premium equal to the remaining dividends required to be paid through the optional redemption date of May 1, 2022 (the “Redemption Date”) discounted at a negotiated rate. This results in an aggregate redemption amount of $64.35 million to be paid to the holders of the $60 million Series A Perpetual Preferred Stock.

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 interest expense savings and increased free cash flows. 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 “Item 1A. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006019/en/

Wendy Goldberg

Chief Communications Officer

(212) 377-1105

WendyGoldberg@iheartmedia.com

Mike McGuinness

EVP, Deputy Chief Financial Officer and Head of Investor Relations

(212) 915-0607

mbm@iheartmedia.com

Source: iHeartMedia, Inc.

FAQ

What is the significance of iHeartMedia's recent stock buyback?

iHeartMedia's buyback of $60 million in preferred stock enhances its financial health by reducing interest expenses and increasing free cash flow.

How much cash did iHeartMedia use for the stock buyback?

iHeartMedia used $64.35 million to repurchase all outstanding shares of Series A Perpetual Preferred Stock.

What does the buyback mean for iHeartMedia shareholders?

The buyback indicates a stronger balance sheet and increased shareholder value through reduced financial obligations.

When was the Series A Perpetual Preferred Stock repurchased?

The repurchase was announced recently, canceling all 60,000 shares of preferred stock.