Live Nation talks $850 million six-year convertible notes to yield 3.25%-3.75%, up 45%-50%

By Abigail W. Adams

Portland, Me., Jan. 9 – Live Nation Entertainment Inc. plans to price $850 million of six-year convertible notes after the market close on Monday with price talk for a coupon of 3.25% to 3.75% and an initial conversion premium of 45% to 50%, according to a market source.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are bookrunners for the Rule 144A deal, which carries a greenshoe of $85 million.

The notes are non-callable until Jan. 21, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to fund the cost of the call spread, to repurchase for cash a portion of its 2.5% convertible notes due March 15, 2023 and for general corporate purposes, which may include the repayment or repurchase of other outstanding debt.

Live Nation is a Los Angeles-based live entertainment company.

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