iHeartMedia, Inc. $450 million DIP Financing and Exit Facility

Davis Polk is advising the administrative agent in connection with the debtor-in-possession financing facility for iHeartMedia, Inc. and certain of its subsidiaries.

Citibank, N.A. acted as a lender and administrative agent.

The DIP facility consists of an up to $450 million asset-based revolving credit facility with an incremental $100 million accordion facility, a $175 million sublimit for letters of credit and a $50 million sublimit for swing line loans. The DIP facility will convert into an exit facility upon iHeart’s emergence from chapter 11 subject to the satisfaction of certain conditions.

The DIP facility was approved by the U.S. Bankruptcy Court for the Southern District of Texas on June 7, 2018. Approximately $371 million of the $450 million facility will be used to repay iHeart’s prepetition ABL credit facility, which will reduce iHeart’s postpetition interest payments by approximately $12 million through the remainder of 2018.

iHeart is a mass media corporation headquartered in San Antonio, Texas, with primary operations in radio broadcasting and outdoor advertising. The company is the largest radio station group owner in the United States, operating 855 radio stations that reach more than 110 million listeners every week and producing 100 syndicated radio programs serving approximately 5,900 radio affiliates.

The Davis Polk restructuring team includes partners Damian S. Schaible (Picture) and Eli J. Vonnegut and associates Stephen D. Piraino and Samuel A. Wagreich. The credit team includes partner Kenneth J. Steinberg, counsel David Hahn and associate William Son. Counsel Ethan R. Goldman is providing tax advice. Counsel Jeanine P. McGuinness and Will Schisa are providing sanctions advice.

Involved fees earner: Damian Schaible – Davis Polk & Wardwell; Eli Vonnegut – Davis Polk & Wardwell; Stephen Piraino – Davis Polk & Wardwell; Samuel Wagreich – Davis Polk & Wardwell; Kenneth Steinberg – Davis Polk & Wardwell; David Hahn – Davis Polk & Wardwell; William Son – Davis Polk & Wardwell; Ethan Goldman – Davis Polk & Wardwell; Will Schisa – Davis Polk & Wardwell; Jeanine McGuinness – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Citibank;

Author: Ambrogio Visconti