Live Nation

Live Nation To Raise $800 Million With Bond Issuance

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LOS ANGELES (CelebrityAccess) — Live Nation Entertainment announced plans to raise capital through the issuance of $800 million in secured notes.

The notes are backstopped by the assets of Live Nation and their guarantors under the company’s existing senior secured credit facility, the company said.

The notes won’t be directly available to retail investors in the U.S. and will only be offered to qualified institutional buyers, investors outside of the U.S. and through some transactions where registration is not required, such as deals with some private equity investors.

The notes will come due in 2027.

According to Live Nation, the cash raised by the offering will be used to fund general “corporate purposes” which likely include keeping the company afloat during the lean times of the COVID-19 pandemic.

Members of Live Nation’s senior management team, including CEO Michael Rapino and President Joe Berchtold, recently told investors on a conference call discussing 2nd quarter earnings that that the company was positioned to survive not staging any concerts through the remainder of 2020.

However, Live Nation already carried significant debt before this offering, with their debt to equity ratio hitting 4.290 at the end of March.

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