Live Nation has seen its share price rally after Liberty Media, which controls about a third of the entertainment giant, repaid a $130m margin loan in full.

Liberty Media owns nearly 70 million Live Nation shares and the parallel margin loan was used to create liquid capital long before the recent stock market downturn.

Previously, Liberty Media took out a loan against its Live Nation shares, and is now looking to prevent “a sale of the underlying stock.”

The move by Liberty Media seems to have been a show of its confidence in Live Nation’s future following its downward spiral in the stock market as events and festivals were cancelled due to the spread of Covid-19.

Following the repayment, Live Nation’s share price saw an 11.6% gain to $32.92, after losing two thirds of its value over the last month. On Wednesday, the live entertainment giant’s share price took a nosedive in early trading to $21.70, marking a 61.5% tumble since its 52-week high of $76.08.

Yesterday’s share price rise has brought Live Nation’s market cap back above $7bn after it went as low as $4.96bn earlier this week.

Liberty Media’s assets include the Formula One motorsport series and satellite radio service SiriusXM.