By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – Live Nation Entertainment Inc. priced $350 million of five-year convertible senior notes at par to yield 2% with an initial conversion premium of 50% on Wednesday, according to a news release.
Pricing of the Rule 144A deal came in the middle of talk, which was for a coupon of 1.875% to 2.375% and an initial conversion premium of 47.5% to 52.5%.
J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are the bookrunners for the Rule 144A offering, which carries a greenshoe of $50 million.
The notes are contingently convertible until Nov. 15, 2024. They are callable on or after Feb. 21, 2023 subject to a 130% hurdle.
The securities are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes, including acquisitions.
Live Nation is a Los Angeles-based concert promoter and music venue manager.
| Issuer: | Live Nation Entertainment Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | Feb. 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 50%
|
| Conversion price: | $105.85
|
| Conversion ratio: | 9.4469
|
| Call option: | On or after Feb. 21, 2023 subject to a 130% hurdle
|
| Puts: | Upon a fundamental change
|
| Price talk: | 1.875%- 2.375%, up 47.5%-52.5%
|
| Pricing date: | Jan. 29
|
| Settlement date: | Feb. 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: LYV
|
| Stock reference price: | $70.57
|
| Market capitalization: | $15.08 billion
|
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