The U.S. Bankruptcy Court for the Southern District of Texas approved up to $450 million in DIP financing for iHeartMedia, which filed for Chapter 11 protection in March.
According to court documents, Citibank will serve as administrative agent for the financing. The $450 million asset-based revolving credit facility will include an incremental $100 million accordion feature, a sublimit for letters of credit of $175 million and a sublimit for swing line loans of $50 million.
The court authorized the company to immediately use proceeds of the DIP facility, simultaneously with its initial draw, to pay in full, in cash, all of its outstanding ABL indebtedness, including interest and fees.
Kirkland & Ellis is serving as legal counsel to iHeartMedia, while Moelis & Company serves as the company’s investment banker and Alvarez & Marsal as its financial advisor.
iHeartMedia, the parent company of iHeartCommunications, specializes in radio, digital, outdoor, mobile, social, live events, on-demand entertainment and information services for local communities.
