New York, March 15 – Live Nation Entertainment, Inc. priced $500 million of five-year convertible senior notes after the market close on Thursday to yield 2.5% with an initial conversion premium of 50%, according to a news release.
The offering came at the middle of talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 47.5% to 52.5%.
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 that priced at par to yield 5.625%, the tight end of for a yield of 5.625% to 5.75%, 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.
Live Nation said it had agreed to repurchase $200.7 million of its existing 2.5% convertible senior notes due 2019 via privately negotiated transactions with a limited number of holders.
Live Nation is a Los Angeles-based events promoter and venue operator.
| Issuer: | Live Nation Entertainment, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $500 million
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| Greenshoe: | $50 million
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| Maturity: | March 15, 2023
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| Coupon: | 2.5%
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| Price: | Par
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| Yield: | 2.5%
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| Initial conversion premium: | 50%
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| Conversion price: | $68.02
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| Conversion rate: | 14.7005
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| Contingent conversion: | Yes, freely convertible from Dec. 15, 2022
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| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and BofA Merrill Lynch
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| Pricing date: | March 15
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| Settlement date: | March 20
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| Distribution: | Rule 144A, Regulation S
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| Stock symbol: | NYSE: LYV
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| Stock price: | $45.35 at close on March 15
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