By Abigail W. Adams
Portland, Me., Jan. 10 – Live Nation Entertainment, Inc. priced an upsized $900 million of six-year convertible notes after the market close on Monday at par with a coupon of 3.125% and an initial conversion premium of 50%, according to a company news release.
Pricing came toward the rich end of tightened talk for a coupon of 3% to 3.5% and in line with talk for an initial conversion premium of 50%, according to a market source.
Initial price talk was for a coupon of 3.25% to 3.75% and an initial conversion premium of 45% to 50%.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are bookrunners for the Rule 144A deal, which carries an upsized greenshoe of $100 million.
The initial size of the deal was $850 million with 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 entered into capped call transactions with a cap price of $144.52, a 100% premium over the last reported price of stock.
Concurrently with the offering, the company agreed to repurchase $440 million of its outstanding 2.5% convertible notes due March 15, 2023 for $489.3 million in cash in privately negotiated transactions.
Proceeds will be used to fund the cost of the call spread, to fund the repurchase 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.
| Issuer: | Live Nation Entertainment, Inc.
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| Amount: | $900 million
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| Greenshoe: | $100 million
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| Issue: | Convertible senior notes
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| Maturity: | Jan. 15, 2029
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| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.
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| Coupon: | 3.125%
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| Price: | Par
|
| Yield: | 3.125%
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| Conversion premium: | 50%
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| Conversion price: | $108.39
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| Conversion rate: | 9.2259
|
| Call options: | Non-callable until Jan. 21, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 12
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| Distribution: | Rule 144A
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| Talk: | Tightened talk for coupon of 3% to 3.5% and initial conversion premium of 50%; initial talk for coupon of 3.25% to 3.75% and premium of 45% to 50%
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| Stock symbol: | NYSE: LYV
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| Stock price: | $72.26 at market close Jan. 9
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| Market capitalization: | $16.68 billion
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