Live Nation to raise additional $500m in debt

Soundless in the middle of a world pandemic and after months of uncertainty because of tournament restrictions worldwide, Live Nation Entertainment has published plans to elevate its liquidity by a extra $500 million.

The $500m will be raised by capability of a secured existing sale in accordance to a liberate printed on December 17, with compensation due in 2028. The debt carries an annual price of interest of three.75% every year, experiences the Los Angeles Alternate Journal.

The notes and the linked existing guarantees will be supplied thru a non-public placement.

The $500m elevate follows Live Nation’s $1.2 billion raised in Might maybe presumably well presumably also 2020 by capability of a secured existing sale, which President and Chief Govt Officer Michael Rapino said at the time would present “extra cushion to withstand any diagram successfully into 2021”.

That debt is on memoir of be repaid by 2027 and carries an annual price of interest of 6.5% every year.

In Q3 2020 – i.e. the duration ended September 30 – Live Nation generated revenues of $184 million, marking a 95% yr-over-yr decline compared with the $3.77 billion it generated in Q3 2019 from dwell reveals, ticketing and sponsorship.

At the head of the Q3 2020, Live Nation had entire money and money equivalents of $2.6bn, which integrated $951m of free money.

At the time, this free money, at the side of $963m of accessible debt ability, supplied the corporate with over $1.9bn in accessible liquidity.

Live Nation told investors that it “believes this level of liquidity offers it with the capability to fund operations till the anticipated return of dwell reveals at scale in the summertime of 2021, preceded by mark sales earlier in the yr.”

In step with Live Nation’s narrate asserting this most up-to-date elevate,  the corporate intends to utilize the proceeds to repay $75m of an existing “senior secured term mortgage B facility”.

It will additionally be worn to pay for customary corporate capabilities, including undisclosed “acquisitions and organic investment alternatives”, and to pay charges and charges linked to the offering.

Speaking to investors in November, Rapino cited a capability vaccine and checking out in explicit as taking part in role in the corporate’s “anticipated return of dwell reveals at scale in the summertime of 2021”.

The company’s shares soared over 22% on November 9 following the news that a COVID-19 vaccine candidate developed by pharma corporations Pfizer and BioNTech had been stumbled on to be extra than 90% good.Song Alternate Worldwide

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