iHeartMedia said Thursday that it opted not to make interest payments totaling $138 million due March 1. In a regulatory filing, the company said its board of directors chose not to make the payments on two sets of priority guarantee notes “as active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring.”'
By not making the payments of $59.1 million on its 11.25% priority guarantee notes due 2021 and $78.8 million on 9.0% priority guarantee notes due 2021, the company trips a 30-day grace period to make the interest payments before triggering an event of default.
The move comes one month after the company used a similar tactic with a group of its junior noteholders. On Feb. 1, iHeart missed a $106 million interest payment, explaining that it had ample cash on hand to make the payment. With the 30-day grace period close to expiring on the skipped Feb. 1 payment, it’s unclear what the company’s next move may be as it works to try to hammer out a debt restructuring deal with its equity holders and lenders.