Comments on: iHeart’s time is up https://streamingradioguide.com/startingover/?p=14831 Is this the end? Thu, 07 Apr 2016 01:42:51 +0000 hourly 1 https://wordpress.org/?v=6.4.3 By: Fred Stiening https://streamingradioguide.com/startingover/?p=14831#comment-17259 Thu, 07 Apr 2016 01:42:51 +0000 http://streamingradioguide.com/startingover/?p=14831#comment-17259 iHeart friendly local San Antonio judge has pushed off the date to May 16th

http://www.expressnews.com/business/local/article/Judge-postpones-ruling-on-iHeartMedia-sets-new-7232657.php

Ball is in the creditor’s court if they want to be more aggressive and perhaps seek help from a Federal Court

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By: Fred Stiening https://streamingradioguide.com/startingover/?p=14831#comment-17255 Wed, 06 Apr 2016 13:53:57 +0000 http://streamingradioguide.com/startingover/?p=14831#comment-17255 In reply to briand75.

iHeart has sizable cash flow – the problem is the free cash flow is now less than their debt service.

By the way, don’t even think of buying the iHeart class A stock or Clear Channel Outdoors. People who don’t follow what the company often do a stock symbol lookup and fail to notice they aren’t remotely buying what they think. IHRT is a pink sheet stock with essentially no value. When Clear Channel “went private”, these were shares not tendered to the two private equity firms. My impression is they were mostly held by the Mays family or perhaps employees with outstanding stock options. They get no dividend and will be the first thing wiped out in bankruptcy if it comes to that.

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By: briand75 https://streamingradioguide.com/startingover/?p=14831#comment-17254 Wed, 06 Apr 2016 13:28:35 +0000 http://streamingradioguide.com/startingover/?p=14831#comment-17254 The possibility of a complete radio failure looms large. iHeart has penetrated so many markets and has such a reliable stream – one would think they were making money hand over fist. If the advertising and the huge concerts and all of the personalities involved can’t generate value…

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By: Fred Stiening https://streamingradioguide.com/startingover/?p=14831#comment-17253 Wed, 06 Apr 2016 13:08:33 +0000 http://streamingradioguide.com/startingover/?p=14831#comment-17253 In reply to briand75.

The problem is there is no obvious buyer for iHeart. They might split off the billboard business, but they already loaded it up with debt. The publicly traded debt is at something like $.30 on the dollar

Looking at the TRACE bond data, you can buy a 10% bond maturing 1/15/18 at 33.25, giving a “yield”of 94%

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C614575&symbol=IHRT4138154

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By: briand75 https://streamingradioguide.com/startingover/?p=14831#comment-17252 Wed, 06 Apr 2016 12:07:58 +0000 http://streamingradioguide.com/startingover/?p=14831#comment-17252 All is moving very slowly. I suppose that indicates how few ideas for solutions there are. An IPO may do it – the one reliable way to generate capital.

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