SFX Entertainment gets consents to amend 9 5/8% notes in solicitation

By Susanna Moon

Chicago, Sept. 10 – SFX Entertainment, Inc. said it obtained unanimous consents to amend its 9 5/8% second-lien senior secured notes due 2019.

The consent solicitation ended at 5 p.m. ET on Sept. 9, extended from at 5 p.m. ET on Sept. 5 and originally set to end 5 p.m. ET on Aug. 29. The solicitation began on Aug. 19.

After receiving the needed consents, the company executed a supplemental indenture to the notes, according to a company press release.

As previously reported, the company extended the offer on Sept. 4 and quadrupled the cash consent payment to $10.00 from $2.50 per $1,000 principal amount of securities.

The company also amended the solicitation, no longer seeking to amend the definition of “consolidated EBITDA” to include in the calculation of consolidated EBITDA recoupments that SFX expects to receive from Management Vennootschap BVBA related to start-up investments made in connection with a live event.

The company said it would continue, however, to seek consents to include in the calculation of consolidated EBITDA the incremental contributions to consolidated EBITDA from marketing agreements entered into after the period for which consolidated EBITDA is being calculated and before the relevant date of determination.

The company had said previously that it would recoup $7.7 million from Management Vennootschap in connection with the live event. It also said that, due to multiple qualified marketing agreements made during or after the fiscal quarter ended June 30, it was eligible to make a roughly $54 million contribution to consolidated EBITDA.

Holders needed to be of record as of 5 p.m. ET on Aug. 18.

The consent payment was conditioned on the receipt of consents for a majority of the outstanding notes.

SFX had also said it planned to issue more of the existing 9 5/8% notes, which will constitute additional notes under the indenture.

Barclays (800 438-3242 or 212 528-7581) was the solicitation agent. MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) was the tabulation and information agent.

New York-based SFX is a producer of live events and digital entertainment content focused on electronic music culture and other world-class festivals.

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