iHeart Media announced on Monday it is exploring a sale of a large part of its stake in Clear Channel Outdoor in order to raise capital and buy more time before a looming bankruptcy. There were a number of news outlets reporting but Insider pulled most of their information from the San Antonio Express News.
In their 8K filing to the SEC, iHeart says the potential sale would include some or all of 
a group of 100 million Class B shares of Clear Channel Outdoor and 10.73 million shares of Clear Channel Outdoor Class A stock. This would not be a sale of all of the Clear Channel shares controlled by iHeart. iHeartMedia owns 315 million Class B shares of Clear Channel Outdoor and 49 million Class A shares of Clear Channel, including the 10.73 million up for sale.
Based on Monday stock prices the sale of the identified shares could raise as much as $450 million for iHeart as they continue to negotiate terms on re-financing their $20 billion in outstanding debt.
No potential buyers were identified by iHeart Media in the 8K or to the media.
Insiders take – It has not been long since our post at the end of October where we talked about the negotiating positions of iHeart owners Bain Capital and Thomas H. Lee Partners and the largest debt holder Franklin Resources. A November 30 SEC filing indicates that iHeart was offering 87.5 percent of iHeartMedia and 87.5 percent of iHeartMedia’s stake in Clear Channel to restructure about $14.6 billion in debt. The bondholders are holding fast as they provided a counter propsal for 100% of Clear Channel stock owned by iHeart as well as the 95.3% ownership iHeart has in the parent company.
Over the short term iHeart has $324.2 million in debt coming due in 2018. Lots more ($8.4 billion) in 2019. If they can find a buyer of the stock they have for sale, it might get them through 2018, buying more time to try and negotiate more favorable terms on the larger debt package. As of the time we are writing this article, there has been no comment from the debt holders on iHeart’s plan to sell shares. They do appear to be settled in to their position and Insider thinks there is no reason for the debt holders to not be patient and see how this plays out.
Insider wishes iHeart would sell 100% of it’s Clear Channel Outdoor shares. The Clear Channel Outdoor execs deserve the chance to grow an out of home business without the distraction of a parent company flirting with bankruptcy and siphoning off funds from asset sales.
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