Proposal
LIBERTY MEDIA has made an offer to invest $1.159 billion for 40% of a reorganized iHEARTMEDIA in a term sheet sent to lenders SATURDAY (2/24). Twenty percent of the restructured company’s common shares would be held by LIBERTY directly and 20% by its SIRIUSXM subsidiary; the proposal is subject to a final Chapter 11 plan acceptable to LIBERTY. The total investment would be offset by any senior communications claims held by LIBERTY, at its discretion.
The term sheet lists several senior claims, unsecured notes claims, and ABL facility claims that will have to be negotiated to arrive at a deal, and the proposal notes that it is “intended to work in concert with the Company’s existing Restructuring Support Agreement discussions and in effect be added to that Plan.” CLEAR CHANNEL OUTDOOR would be “spun off in a taxable transaction,” and the Investment Agreement would include a “no-shop” obligation of the debtors and would require the debtors to cooperate in getting the Bankruptcy Court to approve the deal. LIBERTY would get four seats on the new Board of Directors, with creditors getting four as well. No “poison pill” provisions are included in the proposal.
A spokesperson for iHEARTMEDIA declined comment.
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