To shore up its liquidity, Live Nation plans to sell $500 million of 3.75% senior secured notes by Jan. 4, the company announced Thursday (Dec. 17). The concert giant will use the proceeds from the notes, due in 2028, to repay $75 million of principal of an existing term loan and pay general corporate expenses including "acquisitions and organic investment opportunities," the press release said.
The pandemic has required Live Nation to seek safety from its lenders; in May, it sold $1.2 billion 6.5% senior secured notes due in 2027. The complete absence of concerts required Live Nation to replace a debt covenant it would otherwise violate -- in July, lenders bought LN some time by replacing its net leverage covenant -- the earnings-to-net debt ratio turns negative in 2020 -- with a requirement to maintain at least $500 million of liquidity, according to a company financial statement.