HOUSTON – iHeartMedia Inc. filed a motion for entry of an order in which it is seeking to obtain post-petition financing with Citibank in an attempt to pay back its pre-bankruptcy asset-based lenders and fund its Chapter 11 bankruptcy case.
The motion was filed on May 17 in the U.S. Bankruptcy Court for the Southern District of Texas at Houston.
With the order, iHeartMedia is hoping to refinance some of its debt and pay operational expenses.
The media company is requesting that the court approve the debtor-in-possession (DIP) facility in an amount not to exceed $450 million and with an incremental amount of $1 million, a sub-limit for letters of credit of $175 million and swing line loans of $50 million.
The proceeds of the DIP facility will be used to repay in full the loans and other obligations outstanding under the pre-petition asset-based lending credit agreement.
The company believes the refinancing will introduce cost savings over the court of the Chapter 11 case, the motion states.
iHeartMedia claims the facility affords it the greatest flexibility with the fewest restrictions and at the lowest cost of all available alternatives under the circumstances and is in the best interest of the debtors, according to the motion.
The media company believes the provisions of the order should be approved, as they are appropriate under the circumstances of the Chapter 11 case.
iHeartMedia is represented by Patricia B. Tomasco, Matthew D. Cavenaugh and Jennifer F. Wertz of Jackson Walker in Houston; James H.M. Sprayregen, Anup Sathy, Brian D. Wolfe and William A. Guerrieri of Kirkland & Ellis in Chicago, Illinois; and Christopher J. Marcus of Kirkland & Ellis in New York, New York.
A hearing will be held on the matter on Thursday, June 7 before Judge Marvin Isgur.
U.S. Bankruptcy Court for the Southern District of Texas at Houston case number 18-31274