Live Nation plans $250 million five-year convertibles to yield 2.5%-3%, up 47.5%-52.5%

By Rebecca Melvin

New York, May 19 - Live Nation Entertainment Inc. plans to sell $250 million of five-year convertible senior notes talked to yield 2.5% to 3% with an initial conversion premium of 47.5% to 52.5%, according to syndicate source.

Live Nation is also planning to price $250 million of straight notes due 2022. Each offering has a $25 million over-allotment option. The deals were expected to price late Monday or on Tuesday, the syndicate source said.

Proceeds will be used to redeem Live Nation's outstanding 2.875% convertible senior notes due 2027, which are putable this year, and to pay related fees and expenses, to reinvest in the company's core business and for general corporate purposes, including potential acquisitions.

Live Nation priced $220 million of the 2.875% convertible notes in 2007.

The new Rule 144A offering is being sold via joint bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC.

Live Nation is a Los Angeles-based concert promoter and music venue manager.

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