Live Nation Entertainment Announces $1 Billion Convertible Notes Offering

By Bobby Samwell • Saturday, December 07 10:16 • Permanent Link

Live Nation Entertainment, Inc. has announced its intention to offer $1.0 billion in aggregate principal amount of convertible senior notes due 2030. The company plans to use the net proceeds from this offering for various purposes, including financing the repurchase of a portion of its existing 2.00% convertible senior notes due 2025, repaying outstanding amounts under its existing revolving credit facility, and for general corporate purposes.

The convertible notes will accrue interest payable semi-annually in arrears and will mature on January 15, 2030, unless repurchased, redeemed, or converted earlier. The company also expects to grant the initial purchasers the right to purchase an additional $100.0 million aggregate principal amount of convertible notes, with the intention of using the additional net proceeds for general corporate purposes.

Holders of the convertible notes will have the right to require the company to repurchase all or a portion of their convertible notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain corporate events constituting a "fundamental change" as defined in the indenture for the convertible notes. The company may not redeem the convertible notes prior to January 24, 2028.

Furthermore, the company expects to enter into separate transactions to repurchase for cash a portion of the existing convertible notes from current holders and anticipates that such repurchases and related market activities may impact the market price of its common stock and the trading price of the convertible notes.

It's worth noting that the convertible notes will be offered through a private placement and will not be registered under the securities act of 1933, as amended. Therefore, they will be offered only to "qualified institutional buyers" under rule 144a of the securities act.

As a result of these announcements, the company's shares have moved 1.6% on the market, and are now trading at a price of $136.76. For more information, read the company's full 8-K submission here.

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