iHeartMedia, Inc. - 10-Q filing on 2015-04-30

Long-Term Debt

3 Months Ended

Mar. 31, 2015

NOTE 3 – LONG-TERM DEBT
Long-term debt at March 31, 2015 and December 31, 2014 consisted of the following:

(In thousands)		March 31,		December 31,
		2015		2014
Senior Secured Credit Facilities⁽¹⁾			$6,300,000		$7,231,222
Receivables Based Credit Facility Due 2017			120,000		-
9.0% Priority Guarantee Notes Due 2019			1,999,815		1,999,815
9.0% Priority Guarantee Notes Due 2021			1,750,000		1,750,000
11.25% Priority Guarantee Notes Due 2021			575,000		575,000
9.0% Priority Guarantee Notes Due 2022			1,000,000		1,000,000
10.625% Priority Guarantee Notes Due 2023			950,000		-
Subsidiary Revolving Credit Facility Due 2018			-		-
Other Secured Subsidiary Debt⁽²⁾			16,729		19,257
Total Consolidated Secured Debt			12,711,544		12,575,294

14.0% Senior Notes Due 2021			1,678,314		1,661,697
iHeartCommunications Legacy Notes⁽³⁾			667,900		667,900
10.0% Senior Notes Due 2018			730,000		730,000
Subsidiary Senior Notes due 2022			2,725,000		2,725,000
Subsidiary Senior Subordinated Notes due 2020			2,200,000		2,200,000
Other Subsidiary Debt			467		1,024
Purchase accounting adjustments and original issue discount			(227,186)		(234,897)
Total debt			20,486,039		20,326,018
Less: current portion			2,844		3,604
Total long-term debt		$	20,483,195	$	20,322,414

⁽¹⁾	Term Loan D and Term Loan E mature in 2019.
⁽²⁾	Other secured subsidiary debt matures at various dates from 2015 through 2025.
⁽³⁾	iHeartCommunications’ Legacy Notes, all of which were issued prior to the acquisition by us, consist of Senior Notes maturing at various dates from 2016 through 2027.

The Company’s weighted average interest rates at March 31, 2015 and December 31, 2014 were 8.4% and 8.1%, respectively. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately $20.0 billion and $19.7 billion at March 31, 2015 and December 31, 2014, respectively. Under the fair value hierarchy established by ASC 820-10-35, the market value of the Company’s debt is classified as either Level 1 or Level 2.

Debt Issuance

On February 26, 2015, iHeartCommunications issued at par $950.0 million aggregate principal amount of 10.625% Priority Guarantee Notes due 2023. The notes mature on March 15, 2023 and bear interest at a rate of 10.625% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2015. iHeartCommunications used the net proceeds from the offering primarily to prepay its Senior Secured Credit Facilities due 2016.

During the first quarter of 2015, iHeartCommunications borrowed $120.0 million principal amount under its receivables based credit facility due 2017 and used the borrowings therefrom for general corporate purposes.

Debt Repayments, Maturities, and Other

On February 26, 2015, iHeartCommunications prepaid at par $916.1 million of loans outstanding under its Term Loan B facility and $15.2 million of loans outstanding under its Term Loan C asset sale facility, using the net proceeds of the Priority Guarantee Notes due 2023 issued on such date.

Guarantees

As of March 31, 2015, the Company had outstanding surety bonds, commercial standby letters of credit, and bank guarantees of $45.9 million, $115.5 million, and $49.5 million, respectively. Bank guarantees of $12.4 million were cash secured. These surety bonds, letters of credit and bank guarantees relate to various operational matters including insurance, bid, concession and performance bonds as well as other items.