SiriusXM Parent Offers $1.16 Billion for a Piece of iHeart
John Malone's Liberty Media, parent of satellite radio giant SiriusXM, has proposed to buy 40 percent of terrestrial radio company iHeartMedia for $1.16 billion.
John Malone‘s Liberty Media, parent of satellite radio giant SiriusXM, has proposed to buy 40 percent of terrestrial radio company iHeartMedia for $1.16 billion. The offer was sent to iHeart lenders and note holders on Monday in the form of a term sheet from Liberty, and it outlines that 20 percent of the common shares would go to Sirius while the other 20 held by Liberty.
The bid arrives just under a month after iHeart skipped a $106 million interest payment to creditors, which triggered a 30-day grace period to give it more time to restructure its sizable ($20 billion) debt and avoid bankruptcy. iHeart needs to reach some sort of a deal and post a payment by the end of that 30 days or risk having to file for bankruptcy.
According to the term sheet, Liberty is willing to finance iHeart’s working capital needs once it files for chapter 11 bankruptcy through a DIP (debtor-in-possession financing) facility.
iHeartMedia has been warning investors of its longtime viability after incurring heavy losses during recent filings, saying conditions “raise substantial doubt of the company’s ability to continue as a going concern.” iHeart owns more than 850 radio stations, plus operates several mobile apps and sponsors major events such as the annual iHeartRadio Festival and the iHeartRadio Fiesta Latina.
More From Pro
