Live Nation Refinances

Live Nation Entertainment finalized a refinancing that it expects will save it some $12 million in annual cash savings, the company announced Aug. 16.

The amended credit agreement provides for a new $350 million  revolving credit facility, a five-year $115 million term A loan facility and a seven-year $950 million term B loan facility. The amendments are in addition to a previously announced issue of $200 million of additional 7 percent senior notes due in 2020 that will yield 6.2 percent, the company said.

Live Nation will use the majority of the proceeds from the new term loans and the senior notes to pay off a higher-priced credit facility and its 8.125 percent senior notes, including related fees and expenses.

“The successful refinancing will enable Live Nation to realize a cash interest savings of $12 million annually and increase our free cash flow,” Live Nation CFO Kathy Willard said.

“The favorable terms we received were no doubt bolstered by our solid financial track record and the market’s confidence in our three-year plan to continue to grow revenue, adjusted operating income and free cash flow.

The amended credit agreement is expected to reap other benefits for Live Nation, including increased flexibility for refinancing and modifies the company’s senior secured credit facilities.