Malone Buys iHeart Debt From GSO to Boost Stake Before Broadcaster’s Bankruptcy

  • Credit arm of Blackstone sold as Liberty was building stake
  • Radio broadcaster may file for bankruptcy this weekend
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GSO Capital Partners, which played a key role in restructuring talks over iHeartMedia Inc.’s debt, exited its position as the biggest U.S. radio broadcaster headed toward a bankruptcy filing, according to people with knowledge of the matter.

The credit unit of Blackstone Group sold roughly $400 million of iHeart debt to billionaire John Malone’s Liberty Media, said the people, asking not to be identified because the information is private. Malone’s company accumulatedBloomberg Terminal a position in the debt to inject itself into restructuring talks for iHeart in an effort to take control of its radio business.