Live Nation Entertainment has completed its previously announced offering of $1bn (£800m/€900m) in aggregate principle amount of 3.125% convertible senior notes due 2029.
The offering size was increased from the original offering size of $850m in response to investor demand and after full exercise of the ‘greenshoe’ option.
Proceeds from the transaction will be used to repurchase a portion of the company’s existing 2.5% convertible senior notes due March 2023, to pay related fees and expenses, to pay the costs associated with capped call transactions and for general corporate purposes.
This may include the repayment of repurchase of certain of the company’s outstanding indebtedness.
This offering will enable Live Nation to minimise share dilution from the 2.5% convertible senior notes due March 2023. The promoter hopes the capped call transaction will mitigate potential equity dilution and increase the conversion premium of the new convertible notes from 50% to 100%.
Michael Rapino, president and chief executive of Live Nation, said: “It’s incredible to see the confidence the market has in live entertainment and the future of Live Nation, with demand reaching almost five times that of our offering on very attractive terms.
“Our pipeline for 2023 remains strong and this added capital bolsters our already strong balance sheet as we continue to grow our business globally through acquisitions and investments.”