Liberty Media Corp., a holding company with a diverse portfolio of investments including currently Live Nation Entertainment, said Thursday it has fully repaid its margin loan for the live event company using a portion of cash on hand.
“With the payment of $130 million, there are no margin or other price triggers that could require a sale of the underlying stock,” Liberty said in a press release. Live Nation shares jumped 14% in a volatile market.
The company’s stock and its financials have been slammed by the coronavirus as live events and gathering are canceled around the world. Ratings agencies have expressed concern about the company’s ability to weather the storm given its debt obligations.
Liberty Media holds approximately 69.6 million shares of Live Nation common stock.
The shares have plunged in recent weeks as investors fled from a business that depends on the ability of people to gather together. But as recently as last night, analysts from LighShed Partners called the stock “far over-sold,” particularly if could avoid tripping a maintenance covenant in the company’s credit agreement.
“We see the company rebounding post-coronavirus to a stronger position than ever, especially as competition wavers. Investors who have the stomach to step-in now should be rewarded,” LightShed wrote.
Complex Liberty Media Corporation operates and owns interests in a broad range of media, communications and entertainment businesses under three tracking stock group – Liberty SiriusXM Group, the Braves Group and the Formula One Group – which includes its subsidiary Formula 1, its interest in Live Nation and minority equity investment in AT&T.