Live Nation talks $500 million five-year convertibles to yield 2.25% to 2.75%, up 47.5% to 52.5%

By Abigail W. Adams

Portland, Me., March 15 – Live Nation Entertainment plans to price $500 million in five-year convertible notes after the market close on Thursday with price talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 47.5% to 52.5%, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and BofA Merrill Lynch are bookrunners for the Rule 144A deal, which carries a greenshoe of $50 million.

There convertible notes are non-callable. The notes are puttable upon a fundamental change. There is full dividend protection.

There is a contingent conversion on the notes until Dec. 15, 2022. Conversion will be settled in cash, shares, or a combination of both at the company’s option.

The convertible notes are being offered concurrently with a $300 million offering of senior notes due 2026 with initial talk for a coupon in the 5.75% area, Prospect News reported.

Proceeds from the offerings will be used to repurchase the company’s 2.5% convertible notes due 2019 from time to time and for general corporate purposes, according to a company release.

Live Nation Entertainment is a Los Angeles-based entertainment events promoter and venue operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.