The offering is Live Nation’s latest bid to shore up working capital amid a pandemic that has devastated the company’s core live events business. Revenues were down 95% year-over-year in the company’s third-quarter earnings this year — a trend which has largely persisted since mid-March.
Like many entertainment businesses, Live Nation has turned to debt to prop up operations this year. The company most recently sold $1.2 billion in secured senior notes in May. Those notes carried a 6.5% annual interest rate and are due for repayment by 2027.
The latest $500 million private debt offering will be used to pay off an existing $75 million loan facility, to pay fees and expenses related to the offering and for general corporate purposes, according to Live Nation.
Together with Live Nation’s existing leverage, the $500 million in new notes will leave the company with approximately $5.35 billion in long-term debt.