Live Nation announced that it is going to offer a $450 million common stock offering, with the proceeds going towards its purchase of a majority stake in Mexico-based promoter OCESA, announced earlier.
The purchase of the promotional giant involves the California-based entertainment giant acquiring 51% of OCESA for $444 million. This stock offering is not contingent upon the completion of the OCESA deal, which is expected to close either later in 2021 or in 2022. Any funds raised beyond the acquisition costs will be put to “general use” by Live Nation. Initially, the deal was agreed upon back in 2019, but was put off due to the business impact of the COVID-19 pandemic on the live entertainment business. OCESA threatened legal action, but the renewed deal will resolve any disputes.
The full press release announcing Live Nation’s stock offering is included below:
LOS ANGELES, Sept. 14, 2021 /PRNewswire/ — Live Nation Entertainment, Inc. (NYSE: LYV) (the “company”) announced that it intends to offer, subject to market and other conditions, $450 million of common stock registered under the Securities Act of 1933, as amended.
The company intends to use the net proceeds from the offering to fund the previously announced acquisition of 51% of the capital stock of OCESA Entretenimiento, S.A. de C.V. (the “OCESA Acquisition”). The company intends to use any remaining proceeds for general corporate purposes. The consummation of the offering of the common stock offered hereby is not conditioned upon the completion of the OCESA Acquisition.
Goldman Sachs & Co. LLC is acting as sole book-running manager for the offering.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
We have filed a shelf registration statement on Form S-3 and such registration statement has become effective on September 14, 2021. The offering of these securities may only be made by means of a preliminary prospectus supplement and accompanying prospectus. Before you invest, you should read the applicable preliminary prospectus supplement and the prospectus in that registration statement and other documents we have filed with the SEC for more complete information about us and the offering. You may get these documents free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, the underwriter or any dealer participating in the applicable offering will arrange to send you the applicable preliminary prospectus supplement and the accompanying prospectus upon request to: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at firstname.lastname@example.org.