Live Nation Seeks to Raise Capital
By Alfred Branch, Jr.
On the heels its first listing among the
the Fortune 1,000, Live Nation late Tuesday announced that it was selling $200 million in convertible senior notes due 2027.
Despite being named the 557th largest U.S. company in the popular listing, Live Nation did not turn a profit in 2006, according to its financials, losing $31.4 million. The company generated revenues of $3.92 billion for the year, and its current market capitalization is $1.41 billion.
After expenses, officials estimate that the net proceeds from the offering will reach $193 to $213 million, which they said would be used “to repay debt under its credit facility and for general business purposes.” . . .
The company said it also plans to give initial buyers a 13-day option to purchase up to an additional $20 million in notes to cover over-allotments. Depending on what the company chooses, the notes may be converted into Live Nation shares, cash, or a combination of cash and stock.
News of the offering Tuesday slightly spooked investors, dropping shares 7.5 percent to close at $21.29, down $1.72. At the market close today, shares inched up $0.21 to reach $21.50.