New Issue: Live Nation prices $200 million convertible senior notes due 2027 with 2.875% coupon, up 27.5%

By Evan Weinberger

New York, July 11 - Live Nation, Inc. priced $200 million in convertible senior notes due with a coupon of 2.875% and an initial conversion premium of 27.5%.

The convertibles came in at the mid range of talk, which had been for a coupon of 2.625% to 3.125% with an initial conversion premium of 24% to 30%.

Banc of America Securities and JP Morgan are joint bookrunners of the Rule 144A transaction. (A report in the July 11 issue of the Prospect News Convertibles Daily incorrectly named JP Morgan as the sole bookrunner.)

There is a $20 million over-allotment option.

The convertibles are offered at par.

The convertibles have a conversion ratio of 36.8395.

There is a call after seven years and puts at seven, 10 and 15 years. There are full dividend and takeover protections.

Live Nation is a Los Angeles-based concert promoter and music venue manager. The company plans to use the proceeds from the issue to repay bank debt and for general corporate purposes.

Issuer: Live Nation, Inc.

Issue: Convertible senior notes

Amount: $200 million

Greenshoe: $20 million

Maturity: 2027

Coupon: 2.875%

Price: Par

Yield: 2.875%

Conversion premium: 27.5%

Conversion ratio: 36.8395

Call: After seven years

Puts: Seven, 10 and 15 years

Bookrunners: Banc of America Securities and JP Morgan

Pricing date: July 10, after close

Talk: 2.625%-3.125% coupon, 24%-30% conversion premium

Distribution: Rule 144A

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