The financial woes of iHeartMedia, home to iHeartRadio’s network of 850-plus AM and FM stations, have been well-documented in recent years, as the former Clear Channel has struggled under the burden of $20 billion in debt. Now it looks like SiriusXM parent company Liberty Media may jump in to save the day.
According to a term sheet submitted on Feb. 23 by Liberty, which owns 69% of satellite radio giant SiriusXM, the company would infuse $1.159 billion into a reorganized iHeartMedia acquiring 40% in New Common Shares, 20% to be held by SiriusXM and 20% by Liberty Media. The proposed restructure, which would include a new nine-member board to directors, of which Colorado-based Liberty would hold four seats, would be subject to approval of a Chapter 11 plan by all parties.
Clear Channel Outdoor, iHeart’s outdoor advertising division, would be spun off as part of the proposed reorganization.
The term sheet calls for “consummation” to be completed by December 21, 2018.
In March 2017, iHeart warned that it may be forced to declare bankruptcy if it cannot reach an agreement with its debtholders.