As ad sales rebound and with interest rates remaining low, iHeartMedia is making moves to strengthen its balance sheet. The company said Tuesday it will use cash on hand to prepay $250 million on its term loan facilities and reprice its incremental term loan.
The $250 million payment will divvied up on a pro-rated basis to prepay a portion of iHeart’s $2.08 billion term loan and its $447 million incremental term loan. At the same time, the audio giant is taking advantage of low interest rates to reprice its incremental term loan.
In a statement, Chairman and CEO Bob Pittman said the debt pay down demonstrates “the encouraging momentum we are seeing across all of our businesses.
“At iHeart, we are committed to deleveraging and strengthening our balance sheet, reducing interest expense and further increasing our free cash flow while still maintaining ample liquidity,” Pittman added.
The company continues to look at “all possible opportunities” to reduce its cost of capital, Pittman said.
The prepayment and the repricing are each expected to close in mid-July.