Live Nation cuts pricing on $800 million term B to Libor plus 300 bps

By Sara Rosenberg

New York, May 3 - Live Nation Entertainment Inc. reduced pricing on its $800 million 61/2-year term loan B to Libor plus 300 basis points from Libor plus 325 bps and added a step-down to Libor plus 275 bps when leverage is less than 2.75 times, according to sources.

In addition, the original issue discount on the term loan B firmed at 991/2, the tight end of the initial 99 to 99½ guidance, sources said.

The 1.5% Libor floor was left unchanged.

Live Nation's $1.2 billion senior secured credit facility (Ba2/BB-) also includes a $300 million revolver and a $100 million 51/2-year term loan A, with both of these tranches priced at Libor plus 300 bps.

The revolver has a 50 bps commitment fee.

JPMorgan, Goldman Sachs and Deutsche Bank are the lead banks on the deal, with JPMorgan the left lead.

There is a $300 million accordion feature.

Covenants include a maximum leverage ratio and a minimum interest coverage ratio.

As was previously reported, Live Nation sold $250 million of senior notes that will be used with the new credit facility to repay its existing credit facility and the credit facility of its wholly owned subsidiary, Ticketmaster Entertainment LLC.

The completion of the notes offering is conditioned on the entry into the new credit facility.

Live Nation is a Beverly Hills, Calif.-based producer of live music concerts.

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