Live Nation Entertainment, Inc. (NYSE: LYV) has announced its intention to offer $1.3 billion in aggregate principal amount of convertible senior notes due 2031. The company plans to use the net proceeds from this offering, along with borrowings under a new senior secured credit facility, for various purposes including the redemption of its 5.625% senior notes due 2026 and the repayment of outstanding amounts under its existing credit facilities.
In connection with the offering, the company expects to grant the initial purchasers the right to purchase up to an additional $100.0 million aggregate principal amount of convertible notes. The notes will accrue interest payable semi-annually in arrears and will mature on October 15, 2031. Holders will have the right to require the company to repurchase all or a portion of their convertible 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.
The company may not redeem the convertible notes prior to October 20, 2028. However, it may redeem for cash all or any portion of the notes (subject to certain limitations) on or after October 20, 2028, but only if the convertible notes are “freely tradable” and other specified conditions are met.
Following the offering, the company intends to amend, amend and restate, or refinance its existing senior secured credit facility. The convertible notes will be offered through a private placement and will not be registered under the Securities Act of 1933.
This news release is not an offer to sell nor a solicitation of an offer to buy the convertible notes or any common stock issuable upon conversion of the convertible notes. The market has reacted to these announcements by moving the company's shares 1.87% to a price of $152.75. For the full picture, make sure to review Live Nation Entertainment's 8-K report.
