iHeart Skips Payment; OKs Executive Bonuses
• As talks of restructuring and/or bankruptcy continue to swirl, iHeartMedia filed two Form 8-Ks with the Securities and Exchange Commission. The first filing reads, in part, “On March 1, 2018, iHeartCommunications, Inc. announced that its Board of Directors has elected not to make the interest payments due on March 1, 2018 of approximately $59.1 million with respect to its outstanding 11.25% Priority Guarantee Notes due 2021 and of approximately $78.8 million with respect to its outstanding 9.0% Priority Guarantee Notes due 2021.”
The filing continues, “The Board elected not to make the payments as active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring. Under the indentures governing the Notes, iHeartCommunications has a 30-day grace period to make the interest payments before such default triggers an event of default.”
• However… in a separate 8-K filing, iHeartMedia’s Compensation Committee of the Board of Directors approved bonus payments for Chairman/CEO Bob Pittman, President/COO/CFO Richard Bressler and EVP, General Counsel and Secretary Robert H. Walls.
• Under a new 2018 Key Incentive Bonus Plan, Pittman (left) will be eligible to earn a target bonus of $2,325,000 for each calendar quarter of 2018. The Committee approved payment of Pittman’s Quarterly Bonus for the period ending March 31, 2018; The Committee also accelerated the payments of bonuses Pittman previously earned during 2016 ($500,000) and 2017 ($500,000) under the iHeartMedia, Inc. 2015 Supplemental Incentive Plan (SIP).
• Dressler (center) will be eligible to earn a Quarterly Bonus of $1,325,000 for each calendar quarter of 2018. The Compensation Committee approved payment of Mr. Bressler’s Quarterly Bonus for the period ending March 31, 2018; The Committee accelerated the payments of bonuses Bressler previously earned during 2016 ($500,000) and 2017 ($500,000) under the SIP.
• Walls will be eligible to earn a Quarterly Bonus of $225,000 for each calendar quarter of 2018. The Committee approved payment of Walls’ Quarterly Bonus for the period ending March 31, 2018. The filing notes: “All of the payments described above are in addition to the bonuses the named executive officers will earn for 2017 performance under the plans in effect for 2017, and any SIP payments earned during 2015, all of which were paid in accordance with the terms of the agreements.”
