Live Nation Entertainment: Creating a Direct Financial Obligation or Off-Balance Sheet Arrangement (Form 8-K)
Creation of a direct financial obligation or off-balance sheet arrangement.
As previously disclosed, Live Nation Entertainment, Inc. (the “Company”) has $ 400 million of unused Term A loan capacity under its modified senior secured credit facility which is available for the Company. Company for a draw at any time before the expiration of the draw period. on October 17, 2021. This $ 400 million was included as part of the Company’s previously disclosed available debt capacity of $ 971 million as at June 30, 2021 and in the Company’s accompanying disclosures regarding its liquidity available at the end of the second quarter to finance operations.
The Company elected to withdraw the $ 400 million Term Loan A and increase the existing liquidity on its balance sheet rather than permanently expire the lenders’ commitments under its amended senior secured credit facility to fund Term Loan A. Accordingly, on September 2, 2021, the Company delivered to JPMorgan Chase Bank, NA, as Administrative Agent under its Amended Senior Secured Credit Facility, an irrevocable notice to withdraw the total of $ 400 million under Term Loan A, and the Company expects the loans to be fully funded by September 8, 2021. The Company intends to use the proceeds of the drawdown for general purposes of the company.
The annual interest rates applicable to term loan A are, at the Company’s option, equal either to the Euro dollar plus 2.25%, or to a base rate plus 1.25%. The Company is required to make quarterly payments on Term Loan A at a rate ranging from 0.625% of the initial principal during the first three years to 1.25% during the last two years, the balance being due to the ‘due in October 2024.
A summary of the material terms of the Company’s amended senior secured credit facility, including Term Loan A, is included in Item 2 of the Company’s Quarterly Report on Form 10-Q filed on August 3, 2021, and is incorporated herein by reference.
Financial statements and supporting documents.
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Live Nation Entertainment Inc. published this content on September 03, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 03 September 2021 09:21:05 PM UTC.