Live Nation Entertainment said Wednesday it plans to offer $800 million worth of bonds for sale and will use proceeds from the offering for general corporate purposes.
The move comes as media and entertainment companies continue to raise cash cushions as their finances are shaken by COVID-19. The giant Beverly Hill-headquartered live event producer, promoter and Ticketmaster parent last month announced a $120 million revolving credit facility loan and plans for $500 million in cost cuts this year, including salary cuts for CEO Michael Rapino and other top executives
Deadline reported last week that Live Nation’s March quarter revenue fell 21% to $1.37 billion. Net losses widened to $185 million from $52 million. Virus-related shutdowns hit in much of the world in March.
Rapino has said the company will be experimenting over the summer in smaller venues in more open states and countries, hopefully edging back towards something resembling a concert industry as we know it by 2021.
Some 65,000 Ticketmaster shows and 9,000 Live Nation shows have been impacted by the spread of COVID-19. Most ticket holders have opted to wait for the postponed events instead of seeking refunds and based on polls appear willing to return to venues if they’re disinfected and there’s easy access to hand sanitizer.
The company is also looking at masks, reduced capacity, “touchless concessions” and expanded use of digital ticketing technology. He said it’s working with medical experts and public health officials on procedures, and with federal and state government in the U.S. and authorities in other countries to develop reopening phases for each market.