Tag

iHeart Media

Browsing

What: iHeart Media has filed for bankruptcy along with some of its units.
Why it matters: The company reached an agreement with holders of more than US $10 billion of its outstanding debt for a balance sheet restructuring.

IHeartMedia Inc has filed for Chapter 11 bankruptcy as the largest U.S. radio station owner reached an in-principle agreement with creditors to restructure its overwhelming debt load.

The company, which traces its roots to the 1972 purchase of KEEZ-FM in San Antonio, Texas, where it is currently headquartered, filed for bankruptcy along with some of its units and said it reached the agreement with holders of more than $10 billion of its outstanding debt for a balance sheet restructuring, which would reduce its debt by more than $10 billion.

“The agreement is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure,”  said CEO Bob Pittman.

IHeartMedia, which has struggled with $20 billion of debt and falling revenue at its 858 radio stations, said cash on hand and cash generated from ongoing operations will be sufficient to fund the business during the bankruptcy process.

The filing comes after John Malone’s Liberty Media proposed on Feb. 26 a deal to buy a 40 percent stake in a restructured iHeartMedia for $1.16 billion, uniting the company with Liberty’s Sirius XM Holdings satellite radio service.

Clear Channel Outdoor, a subsidiary of iHeartMedia and one of the world’s largest billboard companies, and its units did not commence Chapter 11 proceedings.

IHeartMedia skipped a $106 million interest payment on Feb. 1, triggering a 30-day grace period during which the company has tried to hammer out a deal with it bondholders.

The company disclosed on Monday it was still exchanging proposals with its creditors, but had yet to reach an agreement.

Its most recent proposal would have given holders of secured loans, who are owed nearly $13 billion, about $5.6 billion in new debt and 94 percent of the equity in a reorganized iHeartMedia. These creditors also would have received iHeartMedia’s 89.5 percent stake in Clear Channel Outdoor Holdings.

Bain Capital and Thomas H. Lee Partners control 68 percent of the voting stock of iHeartMedia, according to the company’s most recent annual report.

The private equity firms led a $17.9 billion leveraged buyout of what was then Clear Channel Communications Inc in 2008, just as the buyout boom was fading and as the signs of the financial crisis began to emerge.

Shares of iHeartMedia lost three-quarters of their value in the second half of 2015 and have never recovered since then. On Monday, the pink sheet stock closed at 48 cents.

[Information by CNBC]

What: Max Ramirez has been named the Director of Multicultural Sales for iHeart Media Los Angeles.  
Why it matters: Ramirez will be responsible for driving revenue in the multicultural category in Los Angeles by leveraging iHeartMedia’s multiplatform assets.

MRMax Ramirez has been named the Director of Multicultural Sales for iHeart Media Los Angeles.

Max will be responsible for driving revenue in the multicultural category in Los Angeles by leveraging iHeartMedia’s multiplatform assets including radio, digital, social, mobile and live events to create custom campaigns for advertisers (iHeartRadio Music Festival, the iHeartRadio Ultimate Pool Party, Jingle Ball, Fiesta Latina and  Wango Tango.)

Before joining iHeart Media, Ramirez served as Vice President, Digital Media at Spanish Broadcasting System where he was responsible for the national digital revenue for all of their interactive platforms and LaMusica app.

Ramirez has over 17 years’ leading U.S. Hispanic marketing initiatives. “iHeart Media is positioned to be a leader in reaching diverse audiences that are in-culture; which is more important than language,” Ramirez tells Portada.

Join us at PORTADA Mexico!

A recap of news and trends in the Sports Marketing world as compiled by Portada’s Editorial team….

Marc Anthony’s Magnus Media Moves into Sports Marketing

MLB spot stillMAGNUS Media announced the inception of MAGNUS Sports, a fully integrated division dedicated to the worldwide representation of major athletes. MAGNUS Sports has completed its first initiative by forming a joint venture with premier boutique baseball agency Praver Shapiro Sports Management and the signing of Cuban-born, 4-time Major League All-Star pitcher Aroldis Chapman. Founded earlier this year by international music icon Marc Anthony, MAGNUS Media has been building a roster of top-tier entertainers, artists and influencers and brings to the venture its expertise in entertainment, branding, marketing, social media, and content development. Praver Shapiro is widely recognized as a leading Sports Management Agency specialized in representing Hispanic baseball talent, and providing a comprehensive array of services designed to address the unique needs of the professional athlete both on and off the field. Marc Anthony said, “Baseball, like music, is an ingrained cultural passion for many Latinos throughout the world, and there’s no shortage of amazing stars of Hispanic origin. Despite that, until now there hasn’t been an enterprise specifically designed to meet their needs.”

GLR’s 10th Anniversary: Chivas of Guadalajara Partner

Prisa_logo_2010-300x119-280x165Radio network GLR is celebrating its 10th Anniversary in the U.S. GLR Networks was first launched in 2005 by Spanish media company, PRISA Radio, in hopes of tapping into the network radio market and to serve as the content production and distribution arm of PRISA Radio here in the USA. Since their launch, GLR has created and syndicated over 32 shows and has grown their network of affiliates to over 150 radio stations around the country, continuously improving ratings across the board. One of the most successful programs among affiliates has been the exclusive radio rights of Chivas of Guadalajara. According to Benny Herzog of LBI Media Inc., “Houston is passionate for Chivas Soccer. As partners with GLR, Liberman Broadcasting’s Houston Flagship Radio Station of All Soccer in Spanish, KEYH “La Ranchera” 850 AM and 101.7 FM is proud to be able to fulfill the appetite for Chivas Soccer. We feel it is very important to be able to bring the fans of Chivas as much coverage as possible in Houston. Hispanics have one sports passion and it’s soccer.”

Grupo Pegaso Gains Rights for Abierto Mexicano Los Cabos

The ATP announced that Bogota’s ATP World Tour 250 tournament would be transferred to Los Cabos, Baja California Sur, Mexico, following acquisition of the event by Grupo Pegaso. The Abierto Mexicano 250 Los Cabos, will have a total financial commitment of nearly US$800,000, ranking as the highest in its category in the Americas Region. The new hard court tournament will take place from August 8 to August 14 in the 2016 season and will become part of North America’s Summer Tour. With this partnership, Grupo Pegaso reaffirms its commitment to Mexico’s development in the sport industry by delivering and organizing high quality events, and further consolidation of men’s professional tennis in México. Grupo Pegaso began operations in 1994 with the purpose of promoting projects with strong social commitment, which over time delivers global importance for Mexico in the most dynamic sectors of the economy.

iHeart Media Ends Relationship with ESPN Deportes for Chicago Radio Station

ESPNDEPORTES_100x100iHeart Media Chicago said it is ending radio station 97.5 FM’s relationship with ESPN Deportes, the Spanish language arm of the sports media company. The station 97.5 FM is one of several in iHeart Media’s stable of Chicago radio outlets. As of Feb. 1, 2016, per a new local marketing agreement with Chicago businessman Pedro Segura, the founder of Prime Dental Manufacturing, 97.5 FM Poder, as the station will be known, plans to air a Mexican Regional format, a blend of music, entertainment and information targeting Hispanic adults.

Nissan steps up College Sports Investment

Nissan_ride_of_life_06Nissan is kicking up its marketing involvement in U.S. college sports with a multi-year campaign to sponsor athletic events and programs at 100 colleges around the country, Automotive News reports. The campaign will put Nissan’s name onto signs at stadiums and arenas in football, basketball, baseball and other sports at 27 colleges and universities by the end of December, and at 100 schools in 2016. Jeremy Tucker, Nissan North America vice president of marketing communications and media, declined to reveal the price tag for the sweeping campaign, but acknowledged that it would be significant. The commitment will extend from permanent sports field signage and sporting event media sponsorship, to athletic scholarships, facility upgrades and academic tutoring for athletes. It will cover sports from huge NCAA college football stadiums down to soccer, swimming, bowling tournaments and golf meets.
This summer, Nissan purchased stadium naming rights for the NFL’s Tennessee Titans. The team is not only located in Nissan’s headquarters city in Nashville, but the team’s name conveniently plays into Nissan’s relaunch into the full-sized pickup segment this winter with a redesigned Titan.

CHECK OUT: Bold Worldwide’s Brian Cristiano: GoPro and Red Bull are Two Examples of Brands that Do it Right