Live Nation, the owner of Ticketmaster and the live entertainment giant, plans to issue $1 billion in convertible bonds and use the proceeds to pay down existing debt.
The company said in a statement on Tuesday (December 3) that it may also provide buyers of the new bond issue with the option to purchase another bond. US$100 million For convertible bonds, within 13 days after issuance of the initial note.
Convertible bonds are debt bonds issued by a company that the holder can convert into a predetermined number of company shares. In this event, bondholders who elect to convert will receive stock or cash, or a combination of the two, at the sole discretion of Live Nation.
The company said it plans to use the funds to repurchase part of an earlier tranche of convertible bonds that came with 2.00% interest rate and expires in 2025.
Live Nation’s new tranche of convertible bonds will mature on January 15, 2030. After that, they will be redeemable at any time.
Live Nation will be able to redeem the bonds after January 24, 2028, subject to certain conditions, including that the company’s share price is at least 130% Conversion price (i.e., the price at which a bond can be converted into stock).
According to Live Nation’s latest earnings report, the company’s revenue was US$5.67 billion Long-term net debt in the third quarter of this year. Among them are $400 million Live Nation plans to repurchase its 2.00% convertible bonds due in 2025.
it also includes US$1.2 billion in senior secured notes 6.5%two in 2027; US$1 billion senior convertible bonds 3.125%expected to expire in 2029; and $950 million in advanced notes 4.75%two in 2027.
The company reported $19.75 billion Season 3 assets. According to Investing.com’s calculations, the company’s debt-to-capital ratio is 0.2, indicating a “moderate” debt level.
The company’s credit outlook took a hit after the U.S. Department of Justice launched an antitrust lawsuit against Live Nation in May, seeking to spin off Live Nation’s concert business and its ticketing business, Ticketmaster.
S&P Global Reaffirmed the company’s “BB-” issuer credit rating but changed its outlook to “negative.”
S&P Global said: “Intensified regulatory scrutiny, financial costs and potential damage to Live Nation’s competitive position in the live events industry from antitrust litigation could harm the company’s credibility, which could lead to a rating downgrade.”global music business
