Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 8, 2020

Article Excerpt

LIVE NATION ENTERTAINMENT INC., $41.96, symbol LYV on New York, is the world’s leading live entertainment company. Its brands include Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. Live entertainment companies such as Live Nation have been hit hard by the coronavirus. That has prompted the company to take measures to shore up its finances in preparation for a sharp downturn in business. On April 13, 2020, Live Nation announced that it had reached an agreement with its lenders to relax the covenants under its credit agreement with those institutions. Essentially, it suspends its requirement to maintain a certain level of profitability between the second quarter of 2020 and the second quarter of 2021. In addition, the company has obtained an additional $120 million credit facility to help it survive the downturn due to stay-at-home orders and so on. With the added credit, it now has access to a further $940 million in debt capacity should it need it. As of…