Live Nation Entertainment Plans $850M Convertible Notes Offering

  • Live Nation Entertainment, Inc LYV seeks to raise $850 million via private convertible senior notes offering due 2029.
  • Live Nation Entertainment looks to use a portion of the net proceeds from the offering to fund its capped call transactions.
  • The company intends to use the remainder of the offering proceeds to repurchase a portion of its 2.5% convertible senior notes due 2023, to pay related fees and expenses, and for general corporate purposes.
  • The initial purchasers get the right to purchase up to an additional $85.0 million aggregate principal amount of convertible notes for settlement within 13 days.
  • The convertible notes will accrue interest payable semi-annually in arrears and will mature on January 15, 2029.
  • Holders of the convertible notes have the right to require the company to repurchase their notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain corporate events.
  • The company may redeem the convertible notes only if the last reported sale price of the company's common stock has been at least 130% of the conversion price.
  • The company expects to enter into privately negotiated capped call transactions to reduce the potential dilution of the company's common stock upon converting the convertible notes.
  • The company held $5.1 billion in long-term debt and $5 billion in cash and equivalents as of September 30.
  • Price Action: LYV shares traded lower by 3.27% at $70.01 in the premarket on the last check Monday.


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