By Rebecca Melvin
New York, May 20 - Live Nation Entertainment Inc. priced $250 million of five-year convertible senior notes at par to yield 2.5% with an initial conversion premium of 52.5%, according to a news release.
Pricing of the Rule 144A deal came at the rich end of talk, which was for a 2.5% to 3% coupon and a 47.5% to 52.5% premium.
Live Nation also priced $250 million of 5.375% straight notes due 2022. Each offering has a $25 million over-allotment option.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were joint bookrunners of the convertibles deal.
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.
Live Nation is a Los Angeles-based concert promoter and music venue manager.
| Issuer: | Live Nation Entertainment Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $250 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2019
|
| Bookrunners: | Goldman Sachs & Co. and J.P. Morgan Securities LLC
|
| Concurrent offering: | $250 million 5.375% straight notes due 2022
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 52.5%
|
| Conversion price: | $34.68
|
| Conversion ratio: | 28.8363
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 2.5%-3%, up 47.5%-52.5%
|
| Pricing date: | May 19
|
| Settlement date: | May 23
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: LYV
|
| Stock reference price: | $22.74
|
| Market capitalization: | $4.52 billion
|
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