Live Nation, the parent company of Ticketmaster, is set to issue $1 billion in convertible bonds, aiming to reduce existing debt. The company announced on December 3 that purchasers could have the option to buy an additional $100 million in bonds within 13 days of the initial issuance.
Convertible bonds allow bondholders to convert them into company stock, either for cash, stock, or both, at Live Nation’s discretion. The raised funds will be used to repurchase part of a previous bond issuance maturing in 2025 and pay down debts from a revolving credit facility, as well as for general corporate purposes.
The new bonds will mature on January 15, 2030. Before October 15, 2029, they are convertible under certain conditions, with unlimited conversion after that. Live Nation can redeem the bonds starting January 24, 2028, if the company’s stock price is at least 130% of the conversion price.
As of Q3 2024, Live Nation’s debt was $5.67 billion, including $400 million from a 2.00% convertible bond due in 2025. The company also holds senior secured notes due in 2027 and 2029. Despite the debt, Live Nation reported $19.75 billion in assets and a moderate debt-to-capital ratio of 0.2.
Live Nation’s credit rating outlook turned negative in May after a US Department of Justice antitrust lawsuit challenged its concert and ticketing operations, leading to concerns over potential financial impacts and the company’s market position.
