Schedule of Long-Term Debt |
As of December 31, 2018 and 2017, iHeartCommunications had outstanding 9.0% Priority Guarantee Notes due 2019, 9.0% Priority Guarantee Notes due 2021, 11.25% Priority Guarantee Notes due 2021, 9.0% Priority Guarantee Notes due 2022 and 10.625% Priority Guarantee Notes due 2023 (collectively, the “Priority Guarantee Notes”) (net of $180.8 million principal amount held by a subsidiary of iHeartCommunications) consisting of: | | | | | | | | | | | | | | | (In thousands) | | | | | | | December 31, | | December 31, | | Maturity Date | | Interest Rate | | Interest Payment Terms | | 2018 | | 2017 | 9.0% Priority Guarantee Notes due 2019 | 12/15/2019 | | 9.0% | | Payable semi-annually in arrears on June 15 and December 15 of each year | | $ | 1,999,815 |
| | $ | 1,999,815 |
| 9.0% Priority Guarantee Notes due 2021 | 3/1/2021 | | 9.0% | | Payable semi-annually in arrears on March 1 and September 1 of each year | | 1,750,000 |
| | 1,750,000 |
| 11.25% Priority Guarantee Notes due 2021 | 3/1/2021 | | 11.25% | | Payable semi-annually in arrears on March 1 and September 1 of each year | | 870,546 |
| | 870,546 |
| 9.0% Priority Guarantee Notes due 2022 | 9/15/2022 | | 9.0% | | Payable semi-annually in arrears on March 15 and September 15 of each year | | 1,000,000 |
| | 1,000,000 |
| 10.625% Priority Guarantee Notes due 2023 | 3/15/2023 | | 10.625% | | Payable semi-annually in arrears on March 15 and September 15 of each year | | 950,000 |
| | 950,000 |
| Total Priority Guarantee Notes | | | | | $ | 6,570,361 |
| | $ | 6,570,361 |
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Outstanding debt at December 31, 2018 and 2017 consisted of the following: | | | | | | | | | (In thousands) | December 31, | | December 31, | | 2018 | | 2017 | Senior Secured Credit Facilities | $ | — |
| | $ | 6,300,000 |
| Receivables Based Credit Facility Due 2020(1) | — |
| | 405,000 |
| Debtors-in-Possession Facility(1) | — |
| | — |
| Priority Guarantee Notes | — |
| | 6,570,361 |
| CCO Receivables Based Credit Facility Due 2023(2) | — |
| | — |
| Other Secured Subsidiary Debt(3) | 3,882 |
| | 8,522 |
| Total Consolidated Secured Debt | 3,882 |
| | 13,283,883 |
| | | | | 14.0% Senior Notes Due 2021 | — |
| | 1,763,925 |
| Legacy Notes(4) | — |
| | 475,000 |
| 10.0% Senior Notes Due 2018(5) | — |
| | 47,482 |
| Subsidiary Senior Notes(6) | 5,300,000 |
| | 5,300,000 |
| Other Subsidiary Debt | 46,105 |
| | 24,615 |
| Purchase accounting adjustments and original issue discount(7) | (739 | ) | | (136,653 | ) | Long-term debt fees(7) | (25,808 | ) | | (109,071 | ) | Liabilities subject to compromise(8) | 15,149,477 |
| | — |
| Total debt, prior to reclassification to Liabilities subject to compromise | 20,472,917 |
| | 20,649,181 |
| Less: current portion | 46,332 |
| | 14,972,367 |
| Less: Amounts reclassified to Liabilities subject to compromise | 15,149,477 |
| | — |
| Total long-term debt | $ | 5,277,108 |
| | $ | 5,676,814 |
|
| | (1) | On June 14, 2018 (the “DIP Closing Date”), iHeartCommunications refinanced its receivables-based credit facility with the new $450.0 million debtors-in-possession credit facility (the "DIP Facility"), which matures on the earlier of the emergence date from the Chapter 11 Cases or June 14, 2019. The DIP Facility also includes a feature to convert into an exit facility at emergence, upon meeting certain conditions. The DIP Facility accrues interest at LIBOR plus 2.25%. At closing, iHeartCommunications drew $125.0 million on the DIP Facility. On June 14, 2018, the Company used proceeds from the DIP Facility and cash on hand to repay the outstanding $306.4 million and $74.3 million term loan and revolving credit commitments, respectively, of the iHeartCommunications receivables-based credit facility. Long-term debt fees incurred in relation to the DIP Facility were expensed as incurred and are reflected within Reorganization items, net in the Company's Consolidated Statement of Comprehensive Income (Loss). On August 16, 2018 and September 17, 2018, the Company repaid $100.0 million and $25.0 million, respectively, of the amount drawn under the DIP Facility. As of December 31, 2018, the Company had a borrowing limit of $450.0 million under iHeartCommunications' DIP Facility, had no outstanding borrowings, had $70.2 million of outstanding letters of credit and had an availability block requirement of $37.5 million, resulting in $342.3 million of excess availability. |
| | (2) | On June 1, 2018, a subsidiary of the Company's Outdoor advertising subsidiary, Clear Channel Outdoor, Inc. ("CCO"), refinanced CCOH's senior revolving credit facility and replaced it with a receivables-based credit facility that provided for revolving credit commitments of up to $75.0 million. On June 29, 2018, CCO entered into an amendment providing for a $50.0 million incremental increase of the facility, bringing the aggregate revolving credit commitments to $125.0 million. The facility has a five-year term, maturing in 2023. As of December 31, 2018, the facility had $94.4 million of letters of credit outstanding and a borrowing limit of $125.0 million, resulting in $30.6 million of excess availability. Certain additional restrictions, including a springing financial covenant, take effect at decreased levels of excess availability. |
| | (3) | Other secured subsidiary debt matures at various dates from 2019 through 2045. |
| | (4) | iHeartCommunications' Legacy Notes, all of which were issued prior to the acquisition of iHeartCommunications by the Company in 2008, consist of $175.0 million of 6.875% Senior Notes due 2018 that matured on June 15, 2018, $300.0 million of 7.25% Senior Notes due 2027 that mature in 2027 and $57.1 million of 5.50% Senior Notes due 2016 held by a subsidiary of the Company that remain outstanding but are eliminated for purposes of consolidation of the Company’s financial statements. |
| | (5) | On January 4, 2018, a subsidiary of iHeartCommunications repurchased $5.4 million aggregate principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties for $5.3 million in cash. On January 16, 2018, iHeartCommunications repaid the remaining balance of $42.1 million aggregate principal amount of 10.0% Senior Notes due 2018 at maturity. |
| | (6) | On February 4, 2019, Clear Channel Worldwide Holdings, Inc., a subsidiary of CCOH (“CCWH”), delivered a conditional notice of redemption calling all of its outstanding $275.0 million aggregate principal amount of 7.625% Series A Senior Subordinated Notes due 2020 (the “Series A CCWH Subordinated Notes”) and $1,925.0 million aggregate principal amount of 7.625% Series B Senior Subordinated Notes due 2020 (the “Series B CCWH Subordinated Notes” and together with the Series A CCWH Subordinated Notes, the “CCWH Subordinated Notes”) for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of newly-issued 9.25% Senior Subordinated Notes due 2024 (the "New CCWH Subordinated Notes"). At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of the CCWH Subordinated Notes on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH Subordinated Notes in accordance with their terms and the trustee acknowledged such discharge and satisfaction. As a result of the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes have been released from their remaining obligations under the indentures and the CCWH Subordinated Notes. |
| | (7) | As a result of the Company's Chapter 11 Cases, the Company expensed $67.1 million of deferred long-term debt fees and $131.1 million of original issue discount to Reorganization items, net, in the Consolidated Statement of Comprehensive Loss for the year ended December 31, 2018. |
| | (8) | In connection with the Company's Chapter 11 Cases, the $6.3 billion outstanding under the Senior Secured Credit Facilities, the $1,999.8 million outstanding under the 9.0% Priority Guarantee Notes due 2019, the $1,750.0 million outstanding under the 9.0% Priority Guarantee Notes due 2021, the $870.5 million of 11.25% Priority Guarantee Notes due 2021, the $1,000.0 million outstanding under the 9.0% Priority Guarantee Notes due 2022, the $950.0 million outstanding under the 10.625% Priority Guarantee Notes due 2023, $6.1 million outstanding Other Secured Subsidiary debt, the $1,781.6 million outstanding under the 14.0% Senior Notes due 2021, the $475.0 million outstanding under the Legacy Notes and $16.5 million outstanding Other Subsidiary Debt have been reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheet as of December 31, 2018. As of the Petition Date, the Company ceased making principal and interest payments, and ceased accruing interest expense in relation to long-term debt reclassified as Liabilities subject to compromise. |
As of December 31, 2018 and 2017, iHeartCommunications had senior secured credit facilities consisting of: | | | | | | | | | | | (In thousands) | | | December 31, | | December 31, | | Maturity Date | | 2018 | | 2017 | Term Loan D | 1/30/2019 | | $ | 5,000,000 |
| | $ | 5,000,000 |
| Term Loan E | 7/30/2019 | | 1,300,000 |
| | 1,300,000 |
| Total Senior Secured Credit Facilities | | | $ | 6,300,000 |
| | $ | 6,300,000 |
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As of December 31, 2018 and 2017, iHeartCommunications had outstanding Legacy Notes (net of $57.1 million aggregate principal amount held by a subsidiary of iHeartCommunications) consisting of: | | | | | | | | | (In thousands) | December 31, | | December 31, | | 2018 | | 2017 | 6.875% Senior Notes Due 2018 | 175,000 |
| | 175,000 |
| 7.25% Senior Notes Due 2027 | 300,000 |
| | 300,000 |
| Total Legacy Notes | $ | 475,000 |
| | $ | 475,000 |
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As of December 31, 2018 and 2017, the Company's subsidiaries, CCWH and CCIBV had outstanding notes consisting of: | | | | | | | | | | | | | | | (In thousands) | | | | | | | December 31, | | December 31, | | Maturity Date | | Interest Rate | | Interest Payment Terms | | 2018 | | 2017 | CCWH Senior Notes: | | | | | | | | | | 6.5% Series A Senior Notes Due 2022 | 11/15/2022 | | 6.5% | | Payable to the trustee weekly in arrears and to noteholders on May 15 and November 15 of each year | | $ | 735,750 |
| | $ | 735,750 |
| 6.5% Series B Senior Notes Due 2022 | 11/15/2022 | | 6.5% | | Payable to the trustee weekly in arrears and to noteholders on May 15 and November 15 of each year | | 1,989,250 |
| | 1,989,250 |
| CCWH Subordinated Notes(1): | | | | | | | | | 7.625% Series A Senior Subordinated Notes Due 2020 | 3/15/2020 | | 7.625% | | Payable to the trustee weekly in arrears and to noteholders on March 15 and September 15 of each year | | 275,000 |
| | 275,000 |
| 7.625% Series B Senior Subordinated Notes Due 2020 | 3/15/2020 | | 7.625% | | Payable to the trustee weekly in arrears and to noteholders on March 15 and September 15 of each year | | 1,925,000 |
| | 1,925,000 |
| Total CCWH Notes | | | | | | | $ | 4,925,000 |
| | $ | 4,925,000 |
| Clear Channel International B.V. Senior Notes: | | | | | | | 8.75% Senior Notes Due 2020 | 12/15/2020 | | 8.75% | | Payable semi-annually in arrears on June 15 and December 15 of each year | | $ | 375,000 |
| | $ | 375,000 |
| Total Subsidiary Senior Notes | | | | | | | $ | 5,300,000 |
| | $ | 5,300,000 |
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| | (1) | On February 4, 2019, CCWH, delivered a conditional notice of redemption calling all of its outstanding $275.0 million aggregate principal amount of Series A CCWH Subordinated Notes and $1,925.0 million aggregate principal amount of Series B Subordinated Notes for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of the New CCWH Subordinated Notes. At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of the CCWH Subordinated Notes on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH Subordinated Notes in accordance with their terms and the trustee acknowledged such discharge and satisfaction. As a result of the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes have been released from their remaining obligations under the indentures and the CCWH Subordinated Notes. |
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