Live Nation Adds $1.2B To Weather The Storm

Live Nation has completed a $1.2 billion offering. The funds will help the concert and ticketing giant survive the many months ahead before live concerts return to normal levels.

Live Nation stock was trending up in the 2% range following the announcement.

“This added liquidity will help bolster our already strong balance sheet, providing us with extra cushion to withstand any scenario well into 2021, as well as ample resources to capitalize on current innovations and ramp business up quickly when the time is right,” said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. “Artists’ endless creativity along with the enduring fan demand for concerts fuels our confidence that there is, and always will be, a strong future ahead for concerts and live events.”

As of March 31, 2020, Live Nation’s total cash and cash equivalents balance was $3.3 billion, which included $817 million of free cash and $2.0 billion of event-related deferred revenue.

In addition, the company has available debt capacity of $963 million from its revolving credit facilities and undrawn term loan A. “The addition of this $1.2 billion in proceeds from these new notes gives the company sufficient liquidity while preserving the existing available debt capacity.”