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Live Nation ups convertible note offering to $900m

Live Nation has increased its offering to $900 million in aggregate principal amount of its 3.125% convertible senior notes due 2029, up from the previously announced $850m.

A convertible note is a form of short-term debt that converts into equity. The promoting giant says it intends to use a portion of the net proceeds from the offering to fund the cost of entering into capped call transactions – an option that automatically sells a stock if the price goes beyond or below some predetermined price.

LN intends to use the remainder to “effect the repurchase of a portion of its 2.5% convertible notes due 2023, to pay related fees and expenses and for general corporate purposes”.

The cap price of the capped call transactions will initially be $144.52 per share, representing a premium of 100% over the last reported sale price of the company’s common stock of $72.26 per share on NYSE.

On 9 January 9, the company agreed to repurchase approximately $440m in aggregate principal amount of the existing convertible notes from a limited number of holders.

“We look forward to creating one of the most attractive venues with a modern and dynamic mix of concerts as well as musicals and other events”

Elsewhere, Live Nation Sweden has announced that it has acquired Stockholm’s historic Göta Lejon venue, which has attracted artists such as Metallica, AC/DC and Patti Smith since opening in 1928.

Shows previously in the diary will take place as scheduled through April 2023 ahead of Live Nation beginning a full renovation of the venue to provide artists with options for both standing and seated audiences. It will reopen in 2024 with an increased capacity of 1,400, up from 1,100.

The executive team will be led by former Cirkus Arena, Stockholm CEO Palle Gustafsson, who will run day-to-day operations in close connection with the local Live Nation team.

‘We’re thrilled to add Göta Lejon to the Live Nation family,” says Live Nation Sweden MD Mattias Behrer. “With its location right in the city centre, it’s a great venue for artists, promoters and producers, and we look forward to growing the range of outstanding live experiences on offer to fans in Stockholm. We look forward to creating one of the most attractive venues with a modern and dynamic mix of concerts as well as musicals and other events.”