Live Nation greenshoe lifts five-year convertibles to $400 million

By Sarah Lizee

Olympia, Wash., Feb. 3 – Initial purchasers for Live Nation Entertainment Inc.’s five-year convertible senior notes exercised their option to purchase an additional $50 million of the convertibles in full, bringing the total issuance to $400 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $350 million of the convertible senior notes at par to yield 2% with an initial conversion premium of 50% on Jan. 29, according to a news release.

Pricing of the Rule 144A deal came in the middle of talk, which was for a coupon of 1.875% to 2.375% and an initial conversion premium of 47.5% to 52.5%.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were the bookrunners for the Rule 144A offering.

The notes are contingently convertible until Nov. 15, 2024. They are callable on or after Feb. 21, 2023 subject to a 130% hurdle.

The securities are putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes, including acquisitions.

Live Nation is a Los Angeles-based concert promoter and music venue manager.

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