Live Nation Spins Up $1.3 Billion Convertible Senior Notes Offering

Live Nation announces a planned offering of $1.3 billion in aggregate principal amount of convertible senior notes due 2031 to repay its debt.

Live Nation plans to offer $1.3 billion of convertible senior notes due in 2031 to repay existing debt as well as potentially fund concert venues. The offering’s proceeds, along with “borrowings” under a new credit facility, will be used to redeem the $300 million of 5.625% notes due in 2026.

The notes will also be used to pay the outstanding amounts in a term B loan facility and the revolving credit facility, which came in at $823.8 million as of June 30. Live Nation also intends to use some of the proceeds for general corporate purposes, which may include funding concert venues, repaying, or purchasing some of its outstanding debt.

Initial buyers will have the right to purchase up to an additional $100 million in convertible notes, with the net proceeds expected to be used for general corporate purposes.

Live Nation had a total debt of $6.48 billion on its balance sheet as of June 30, with $4.99 billion being long term and $1.49 billion being “current.” The latter includes $1.1 billion of senior convertible notes due 2029 that holders could have exchanged during Q3. The company also has a $135 million euro-issued note due this year, and $275 million of debt due next year related to the acquisition of a U.S. venue.

Next year, the company will have $1.2 billion of 6.5% senior secured notes and $950 million of 4.75% senior notes, both due in 2027. It will also have $500 million of 3.75% senior notes due 2028.

News of the planned offering comes on the heels of the Supreme Court’s decision against hearing Live Nation’s appeal of a lower court ruling that struck down its subsidiary Ticketmaster’s arbitration agreement. The rejection came alongside hundreds of others in an order list this week that did not publicly disclose the reasons for those denials.