Liberty Media Corporation has loudly stepped into the conversation regarding the financial future of iHeartMedia — on Saturday, Feb. 24, Liberty, the majority stockholder of SiriusXM submitted a lengthy term sheet “to certain of [iHeartMedia’s] lenders and noteholders” containing an ambitious blueprint to achieve a restructured iHeartMedia, Inc.
Liberty has proposed a $1.159 billion cash investment in a reorganized iHeartMedia, and, in exchange, according to the term sheet, “20% of the New Common Shares shall be held by Sirius and 20% of the New Common Shares shall be held by Liberty Media.” The plan also calls for “[Clear Channel] Outdoor shall be spun off in a taxable transaction. Parties to cooperate to ensure transaction is taxable and otherwise done in a tax efficient manner.”
Liberty’s term sheet also lays out a revamped nine-member Board of Directors to be aligned as follows: “Liberty shall have the right to appoint [four] directors, [one] of whom shall be independent for audit committee purposes; the CEO shall be a director; the creditors shall have the right to designate [four] directors, [two] of whom shall be independent for audit committee purposes.”
The deal is subject to a final Chapter 11 plan that is acceptable to Liberty, which proposes its plan be consummated “no later than December 21, 2018 and other interim milestones to be negotiated.”

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