trending Market Intelligence /marketintelligence/en/news-insights/trending/kdn37ipgy8soxpo4h1goqa2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In this list

S&P upgrades iHeartMedia on proposed debt exchange

South Korean Multichannel Industry To Survive With Right Strategies

South Korean Telcos Drive Next Wave Of Growth Through Home IoT Opportunities

Mining Exploration Insights: Financing Falls To 8-Month Low In October

ITU Clears The Way For 17.25 GHz Of New mmWave Spectrum For 5G


S&P upgrades iHeartMedia on proposed debt exchange

S&P Global Ratings on Dec. 21 upgraded its corporate credit rating on iHeartMedia Inc. and unit iHeartCommunications Inc. to CC from SD.

The rating agency took the action following iHeartCommunications' offer to exchange its 10% senior notes due 2018 for its priority guarantee notes due 2021. As iHeartMedia's debt is trading at notable discounts to par of 25% to 50%, S&P believes that the company's capital structure is unsustainable.

"If the 10% noteholders accept the offer by Jan. 4, 2017, they would receive an equal amount of par value of the priority guarantee notes," the agency said. However, S&P believes that the holders of the 10% notes face a substantial risk of nonpayment if they do not accept the exchange. Further, if the noteholders accept the exchange, it would result in them "accepting securities that mature slightly more than three years beyond the 10% note maturity, and securities equivalent to priority guarantee notes that are currently trading roughly 25% below par value."

In the event that iHeartCommunications goes through with the exchange offer, S&P will consider it distressed and tantamount to a default, based on the agency's criteria. The company owes more than $20 billion in debt and depends on asset sale proceeds, and favorable business, financial and economic conditions to meet its financial commitments.

The ratings outlook is negative.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.