Wed, Mar. 9, 6:41 PM
- IHeartMedia (OTCPK:IHRT +4.6%) has won a temporary restraining order rescinding certain notices of default it received from senior creditors who objected to a stock transfer.
- Claiming that covenants were violated, creditors had filed the notices of default after IHeart gave one unrestricted subsidiary, Broader Media, a stake of $516M of common stock in another unit, Clear Channel Outdoor Holdings (CCO -4.5%).
- The restraining order expires in 14 days, according to IHeart's 8-K, though the court may extend it for 14 days beyond that.
- IHeart says it agreed not to do anything with the shares until another hearing can be held.
- Previously: Moody's: Default notice won't change iHeartMedia ratings (Mar. 08 2016)
- Previously: IHeartMedia files suit after receiving default notices (Mar. 08 2016)
Tue, Mar. 8, 12:27 PM
- IHeartMedia (OTCPK:IHRT +8.1%) has filed suit to contest notices of default received tied to a share transfer at its subsidiary Clear Channel Outdoor Holdings (CCO -1.4%).
- The company gave an unrestricted subsidiary, Broader Media, $516M of common stock in Clear Channel Outdoor in early December -- a move that could help sell a new bond for a company struggling to tamp down some $20.6B in debt. But bondholders have objected that covenants were violated by the transfer.
- The creditors filing represent at least 25% of outstanding principal for four of IHeart's priority guarantee notes.
- IHeartMedia has lost money every year since it last posted net income, of $938.5M in 2007.
Wed, Feb. 17, 1:27 PM
- Disappointed with capital structure issues at iHeartMedia (OTCPK:IHRT), Topeka Capital's David Miller has downgraded Clear Channel Outdoor Holdings (CCO +2.8%) to Sell from a previous Buy recommendation.
- Shares in CCO have tumbled 59% over the past six months, though Miller has slashed the price target further, to $2 from his previous $11; that's 45% below today's price of $3.63.
- Only 400 radio towers were sold by CCO's parent iHeartMedia vs. an expected 1,000, he notes, and a deal to sell a European billboard business for $3B fell apart.
- IHeartMedia is facing a leverage issue, Miller notes, with $197M in maturities coming due in December, and $8.3B in senior secured debt coming due in 2019.
Fri, Jan. 8, 3:48 PM
- Clear Channel Outdoor's (NYSE:CCO) $458.5M sale of billboard assets to Lamar Advertising will increase its leverage, Moody's says -- but will have the intended effect of improving liquidity at parent iHeartCommunications (OTCPK:IHRT -10.9%).
- The firm says the sale shouldn't affect the ratings of either company; iHeart will see increased chances of buying back debt (which amounts to more than $20B) at a discount or to execute a distressed exchange.
- Moody's says a distressed exchange might be considered a Limited Default, but that depends on the terms of the exchange/buyback.
- Adjusting for the special $0.6026/share dividend paid out yesterday, shares of Clear Channel Outdoor are up 2.1% following the closing of its sale to Lamar.
- Previously: Clear Channel Outdoor closes $458.5M sale, gives back gains (Jan. 07 2016)
- Previously: Clear Channel Outdoor +15.3% on report it's discussing $450M billboard sale (Jan. 06 2016)
Thu, Jan. 7, 1:25 PM
- Following on a rash of virtual-reality news coming out of CES week -- including hardware from Facebook's Oculus, HTC and Sony -- Universal Music Group (OTCPK:VIVHY +0.4%) is teaming up with iHeartMedia (OTCPK:IHRT -6.4%) to make inroads into VR performances around music superstars.
- There will be six to 10 VR music experiences this year, says iHeartMedia's John Sykes. With the partnership, one VR experience by a UMG artist will be part of each major marquee iHeartMedia event this year, kicking off with the iHeartRadio Music Awards April 3.
- They'll also do four VR concerts together in the second half.
- “We’ll get into the game with the first show and deliver the best possible experience we can with the technology available today, and then the following year it will look better,” Sykes says. “It’s going to be a work-in-progress learning experience.”
Thu, Jan. 7, 1:03 PM
- After vaulting toward the close yesterday over a report that it was discussing selling nearly $1B in billboard assets, Clear Channel Outdoor Holdings (NYSE:CCO) has given it back and then some, down 8.3% today.
- The company says it's closed a sale of five "non-strategic" outdoor markets to Lamar Advertising (NASDAQ:LAMR), for $458.5M in a pair of transactions.
- One transaction covers Reno, Nev.; Des Moines, Iowa; and Seattle. Those markets generated $40.9M in net revenues (trailing 12 months). The other covers Cleveland and Memphis, Tenn.; those markets generated $35.6M in net revenues. The $458.5M deal price is a blended multiple of 12.5 times the five markets.
- The company didn't state a use for proceeds, though it's expected they could go toward the $20B debt load of parent iHeartMedia (OTCPK:IHRT -5.5%).
Wed, Jan. 6, 3:55 PM
- Clear Channel Outdoor Holdings (NYSE:CCO) has jumped 15.3% in the closing minutes as Reuters reports Lamar Advertising (NASDAQ:LAMR) is in advanced talks to buy a set of billboard assets for nearly half a billion dollars.
- Lamar is nearing a deal to buy CCO's billboard assets in Cleveland; Des Moines, Iowa; Memphis, Tenn.; Reno, Nev.; and Seattle, sources said, though talks aren't final. The holdings could draw about $450M.
- One source adds CCO plans to sell a different $350M-$400M of billboard assets elsewhere to private buyers such as Total Outdoor and Reagan Outdoor.
- Proceeds would help CCO's parent iHeartMedia (OTCPK:IHRT) with some $20.6B in debt.
Nov. 11, 2015, 1:00 PM
- IHeartMedia (OTCPK:IHRT) is up 12.7% as it launches a new app targeted at children -- iHeartRadio Family -- in a first expansion of its flagship brand.
- The app is a partnership with Build-A-Bear Workshop, which will get its own radio station in the deal.
- Featuring streaming music and storytelling, it's aimed at children 4-11 and will also feature Radio Disney Junior and stations built around musicians Nick Jonas, Selena Gomez and 5 Seconds of Summer. Listening is free and uncapped.
- It's available in the iOS, Google Play and Amazon app stores.
Nov. 9, 2015, 5:22 PM
- Clear Channel Outdoor Holdings (CCO -4.8%) is looking at the sale of U.S. billboard assets that might collectively come to $800M, Reuters reports.
- The company has hired Moelis & Co. to advise it on a sale, sources said. The assets in question reportedly generate annual EBITDA of $60M-$70M.
- Buyers could include rivals like Outfront Media (NYSE:OUT), Lamar Advertising (NASDAQ:LAMR), GTCR and JCDecaux. Clear Channel could divest holdings in a variety of regions, which could include Las Vegas, Seattle, Portland, and Bentonville and Fort Smith, Ark.
- About 88% of Clear Channel Outdoor is held by iHeartMedia (OTCPK:IHRT -10%).