IHeartMedia Inc., scrambling to stay current on more than $20billion in debt, is asking bondholders of its iHeartCommunicationsunit to make it easier for the radio company to pursue a futurefinancial overhaul. The stock rose to its highest level in almosttwo months.

IHeart wants investors to approve amendments to six sets ofnotes that would narrow the list of holders eligible to vote on anysubsequent changes related to a debt exchange, the company said ina Nov. 28 statement. The change would allow iHeart to excludeholders who aren't institutional “accredited investors,” as wellas those who aren't U.S.-based or whose inclusion wouldrequire iHeart to comply with a specific jurisdiction's securitieslaws, the company said. In return, iHeart would pay investors whoconsent as much as $8 million, with an additional $12 million if adebt swap occurs later.

“The amendment proposed in the consent solicitations wouldmaximize our flexibility as we continue to proactively exploreinitiatives to strengthen our capital structure and position thecompany for long-term growth and success,” iHeart spokeswoman WendyGoldberg said in an e-mail.

The solicitations expire on Dec. 7 and need majority support topass, according to the statement. The San Antonio-based company hasa coupon payment due Dec. 15 on $1.5 billion of 9%priority-guarantee notes due 2019, which are among those affectedby the potential amendment. Those notes were quoted at 79.7 centson the dollar Monday according to Trace, the bond-price reportingsystem of the Financial Industry Regulatory Authority.

Shares of iHeartMedia climbed 6.4% to $1.50 in New York tradingMonday, while $950 million of 10.625 percent iHeartCommunicationspriority-guarantee notes due 2023, which were included in theconsent solicitation, jumped 1.5% on the dollar to 75.5 cents.

“One thing that was made pretty clear is that they'reconsidering doing some sort of exchange offer,” said BloombergIntelligence analyst Philip Brendel. “By excluding certain holders,they may be able to avoid inconveniences and costs tied toregistering new securities.”

IHeart ranks as the biggest U.S. radio station owner.Traditional broadcasters have been struggling with high debt loadsand losses as online music services poach away audiences,advertisers and revenue. Ad revenue fell 3% for traditional radiostations in 2014 and 2015, while digital ad revenue grew 9% and 5%in those years, according to the Radio Advertising Bureau.

Case Dismissed

IHeart's assets include Clear Channel Outdoor Holdings, itsbillboard advertising business. Mario Gabelli's Gamco AssetManagement, which held almost 10% of the unit's Class A shares,claimed in a lawsuit this year that iHeart executives violatedlegal duties to shareholders by selling assets and moving fundsfrom Clear Channel to repay the parent company's debts. IHeart wondismissal of Gamco's case earlier this month.

IHeart is grappling with debt accumulated since 2008, when thecompany was acquired by private-equity giants Bain Capital Partnersand Thomas H. Lee Partners. Almost $8.5 billion is slated to comedue over the next three years, according to data compiled byBloomberg.

Moelis & Co. is acting as the solicitation agent on theamendment proposal, according to the statement. IHeart has beenworking with Moelis and Millstein & Co. to negotiate therestructuring of its debt, while a group of creditors led byFranklin Advisers Inc. has been advised by PJT Partners Inc. andlaw firm Jones Day.

IHeart said in a Nov. 9 securities filing that “there can be noassurance” the company will stay in compliance with its debtcovenants. A failure to meet those requirements would result in adefault, the company said.

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