Live Nation Entertainment, Inc. (LYV) has priced its offering of $900.0 million in aggregate principal amount of 3.125% convertible senior notes due 2029. The Convertible Notes were priced at 100.000% of their principal amount. The Notes will have an initial conversion rate of 9.2259 shares of common stock per $1,000 principal amount of the Convertible Notes. The initial closing date of the offering is expected to occur on January 12, 2023.
The Notes will accrue interest at a rate of 3.125% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2023. The Convertible Notes will mature on January 15, 2029.
The company noted that the offering size was increased from the previously announced offering size of $850.0 million.
Also, in connection with the pricing of the Notes, the company entered into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates and/or other financial institutions. The cap price of the capped call transactions will initially be $144.52 per share.
On January 9, Live Nation Entertainment agreed to repurchase approximately $440.0 million in aggregate principal amount of the existing convertible notes from a limited number of holders in privately negotiated transactions for an aggregate purchase price of approximately $489.3 million.
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