iHEARTMEDIA STRIKES DEBT DEAL

iHeartMedia filed for Chapter 11 bankruptcy today, having reached an in-principle deal with creditors to restructure its debt load.

The company, owner of the largest U.S. radio network, reached the agreement with holders of more than $10b of its outstanding debt. iHeartMedia reported that it had enough cash on hand to keep the lights on during the bankruptcy process.

Chairman and CEO Bob Pittman said the agreement “allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”

Billboard behemoth Clear Channel Outdoor Holdings Inc. and its subsidiaries did not commence Chapter 11 proceedings. iHeart has 856 terrestrial radio stations and controls Clear Channel Outdoor Holdings.

The filing was made in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, and it came after months of negotiations with investors and rejecting offers from outside buyers.

Bain Capital and Thomas H. Lee Partners, which purchased the company in 2008, control more than two-thirds of iHeartMedia’s voting stock.