Live Nation issues $800 million debt offering for ‘corporate purposes’

Live Nation issued an $800 million debt offering for “general corporate purposes.”

Today’s leading concert promoter announced the sale of its debt in a statement shared with Digital Music News. The $800 million of “senior secured notes” — or those that must eventually be repaid before other debts in the event of the issuer’s bankruptcy — will mature in 2027, according to the high-level description.

Live Nation “intends to use the net proceeds of the deposit for general corporate purposes”, which were not specified.

At its closing, the document notes that the debt “will be offered by way of private placement and will not be registered under the Securities Act of 1933.” Accordingly, only “qualified institutional purchasers” – not US individuals – are eligible to purchase the Notes under securities law. Rule 144A.

Live Nation shares, which are bought and sold as LYV, is down 70 cents per share (1.83%) on the day. Currently, a single share of the Beverly Hills-based company will cost buyers $37.45.

The stock price decline may also have resulted, in part, from Live Nation’s S&P Global credit rating downgrade. Today, Standard and Poor’s Global downgraded the company’s credit rating from ‘BB-‘ (assigned in March) to “B+”.

S&P Global website note the following companies with a “B” credit rating: “Adverse business, financial or economic conditions are likely to adversely affect the obligor’s ability or willingness to meet its financial commitments on the obligation. »

At the end of last month, Digital Music News was first to report that the Kingdom of Saudi Arabia had invested $500 million in the common stock of Live Nation, thereby assuming a 5.7% stake in the company.

Live Nation’s per-share price fell as low as $21.70 during the nationwide start of the novel coronavirus pandemic, but has rebounded significantly in the meantime. Exactly a month ago, we reported that Live Nation had secured a separate $120 million emergency loan.

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