Live Nation has moved forward with a $1 billion senior notes offering. Photo Credit: Live Nation
Live Nation (NYSE: LYV) has officially revealed and priced $1 billion worth of convertible senior notes.
The Ticketmaster parent just recently disclosed the sizable offering in a pair of announcements, the first detailing the notes themselves, the second elaborating on the pricing specifics thereof. Set to mature in 2030, the debt will accrue interest, payable semi-annually beginning in mid-July 2025, at 2.875% yearly, Live Nation relayed.
The notes are further bringing an “initial conversion rate” of a little over 5.2 shares per $1,000 issued – or an approximately 40% premium to Live Nation’s current stock price, according to the business.
Additionally, “initial purchasers” will have 13 days from issuance to spring for up to $100 million more in notes. Closer to the present, the original transaction is expected to wrap this coming Friday, December 6th.
Live Nation intends to use the proceeds from the main offering as well as the possible $100 million tranche to pay down its credit facility and to buy back a portion of its 2.0% notes due in 2025.
On the repurchase front, Live Nation said it’d agreed to buy back $316 million worth of notes possessed by “a limited number of holders.” The appropriate parties hammered out the relevant terms “in privately negotiated transactions for an aggregate purchase price of” about $414 million, as described by the Timeline majority stakeholder.
Meanwhile, Live Nation also took the opportunity to emphasize at length the maneuvers’ potential to bring about stock price shifts. At the time of writing, LYV was down slightly on the day at $136.43 – which nevertheless represents a nearly 50% spike from 2024’s beginning.
On the heels of Live Nation’s relatively strong Q3 2024 earnings report – and given the chance of a favorable antitrust-lawsuit resolution – multiple analysts believe LYV is poised to keep on climbing. Most recently, Guggenheim maintained its Live Nation stock buy rating and upped its target price from $146 to $155.
As many have already pointed out, non-label music-dependent companies are continuing to achieve material market growth – that includes Live Nation as well as Spotify (NYSE: SPOT), which spiked past $500 per share today – as the majors’ respective stock prices are sagging.
Nevertheless, different analysts aren’t quite so enthusiastic about Live Nation stock’s path forward – in general, concert and festival attendance remains a concern – and several stakeholders have exited their positions. Chief among those sellers is Saudi Arabia’s Public Investment Fund, and Fred Alger Management and others have likewise decided to sell LYV.
