Live Nation has issued an $800 million debt offering for “general corporate purposes.”
Today’s leading concert promoter announced its debt sale in a statement that was shared with Digital Music News. The $800 million worth of “senior secured notes” – or those that must conceivably be repaid before other debts in the event that the issuer declares bankruptcy – will mature in 2027, per the top-level description.
Live Nation “intends to use the net proceeds from the filing for general corporate purposes,” which weren’t specified.
At its close, the document emphasizes that the debt “will be offered through a private placement and will not be registered under the Securities Act of 1933.” Accordingly, only “qualified institutional buyers” — not U.S. individuals — are eligible to purchase the notes under the Securities Act’s Rule 144A.
Live Nation’s stock, which is bought and sold as LYV, is down 70 cents per share (1.83 percent) on the day. Currently, a single share of the Beverly Hills-based company will set buyers back $37.45.
The stock-price dip may also have resulted, in part, from Live Nation’s S&P Global credit rating downgrade. Today, Standard and Poor’s Global reduced the company’s credit rating from “BB-” (which was assigned in March) to “B+.”
S&P Global’s website notes the following of companies with “B” credit ratings: “Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments on the obligation.”
Late last month, Digital Music News was first to report that the Kingdom of Saudi Arabia had invested $500 million in Live Nation’s common stock, thereby assuming a 5.7 percent ownership of the company.
Live Nation’s per-share price dipped as low as $21.70 during the domestic onset of the novel coronavirus pandemic, but has bounced back considerably in the interim. Exactly one month ago, we reported that Live Nation had secured a separate, $120 million emergency loan.