Live Nation wraps loan amendment, modifying total leverage covenant

By Sara Rosenberg

New York, July 3 - Live Nation Entertainment Inc. completed the amendment to its credit facility that revised the consolidated total leverage ratio, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The leverage ratio is now set at 4.5 times through Dec. 31, 2013 and decreases to 4.25 times on March 31, 2014, 4.0 times on March 31, 2015 and 3.75 times on March 31, 2016.

In addition, pricing on the revolver, term loan A and term loan B was revised if total leverage exceeds 4.0 times.

Specifically, the spread on the revolver and term loan A can range from Libor plus 200 basis points to 325 bps, and pricing on the term loan B can range from Libor plus 275 bps to 325 bps, based on leverage.

Also, the definition of consolidated EBITDA was revised to allow for restructuring, non-recurring or other unusual items of loss or expense of 15% of consolidated EBITDA for any four-quarter period, with a total cap of $100 million. This was changed from $10 million for any four-quarter period.

The amendment was completed on June 29.

Lenders were paid a 25 bps consent fee.

JPMorgan Chase Bank is the administrative agent on the deal.

Live Nation is a West Hollywood, Calif.-based entertainment and eCommerce company.

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