Liberty Media talks $900 million notes exchangeable for Live Nation at 2%-2.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 5 – Liberty Media Corp. plans to price $900 million of exchangeable senior debentures due 2053 for Live Nation Entertainment stock after the market close on Wednesday with price talk for a coupon of 2% to 2.5% and an initial exchange premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $135 million.

The notes are non-callable for five years.

The notes are putable in five years or upon a change of control.

Proceeds, together with cash on hand, will be used to make repurchases of Liberty Media’s 0.5% exchangeable debentures due 2050 in privately negotiated transactions or to settle exchanges or redeem the notes.

The 0.5% exchangeable notes have $920 million outstanding and become freely callable after Sept. 1, 2024.

The 0.5% notes are also putable on Sept. 1, 2024, according to a company press release.

Remaining proceeds will be used for general corporate purposes.

Liberty Media is an Englewood, Colo.-based media, communications and entertainment company.

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