Live Nation Entertainment, Inc. (NYSE: LYV) has announced its plans to offer $1.3 billion in aggregate principal amount of convertible senior notes due 2031. The company intends to use the net proceeds from this offering for various purposes, including the redemption of its 5.625% senior notes due 2026 and the repayment of amounts outstanding under its existing credit facilities. Additionally, the funds may be utilized for general corporate purposes, such as funding future venues or the repayment of outstanding indebtedness.
As part of the offering, the company expects to grant the initial purchasers the right to buy an additional $100.0 million aggregate principal amount of convertible notes. If exercised, Live Nation Entertainment plans to use the additional net proceeds for general corporate purposes, potentially including the repayment or repurchase of certain outstanding indebtedness.
The convertible notes will accrue interest payable semi-annually in arrears and will mature on October 15, 2031, unless repurchased, redeemed, or converted in accordance with their terms prior to that date. Holders of the convertible notes will have the right to require the company to repurchase all or a portion of their notes at 100% of their principal amount, 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.
Following the offering, the company intends to amend, amend and restate, or refinance its existing senior secured credit facility to obtain various facilities, including a term loan b facility, a delayed draw term loan a facility, a multicurrency revolving credit facility, and a venue expansion revolving credit facility.
It's important to note 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 may only be offered to qualified institutional buyers under rule 144a of the securities act.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the convertible notes or any common stock issuable upon conversion. Additionally, the convertible notes and any common stock issuable upon conversion may not be offered or sold in the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the securities act. As a result of these announcements, the company's shares have moved 1.87% on the market, and are now trading at a price of $152.75. For more information, read the company's full 8-K submission here.
