WEST PALM BEACH, FLA.: ION Media Networks said it is in discussions with secured lenders regarding a debt restructure. ION has hired Moelis & Co. for financial advice and Kirkland & Ellis LLP for legal counsel in connection with a potential restructure. ION’s lenders include Avenue Capital Group and Canyon Capital Anderson LLC. Both have been buying ION’s senior debt on the secondary market for 20 cents on the dollar, according to The Wall Street Journal. (Story continues after Sponsored Link.)
ION is looking to do a debt-for-equity exchange to deleverage itself from its debt of around $2.7 billion. WSJ said the negotiations commenced as ION faced a $19 million interest payment due today, and that it was unlikely to pay. The newspaper said the restructure under discussion would “likely wipe out most of the equity held by ION’s existing owners, including Citadel and NBC Universal.” Citadel put $100 million into ION when it took the company private in 2007, creating it from the former Paxson Communications properties. NBC had put $415 million in Paxson eight years before that.
ION indicated its intention to continue operating its network and 59 TV stations without interruption.
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