The world's largest promoter of concerts and seller of tickets, Live Nation Entertainment Inc, already completed a debt refinancing. Live Nation said the completion would cut its yearly cash interest payments by USD12 million.
The Beverly Hills, California-headquartered corporation said it obtained a revolving credit line worth USD335 million. It also received a seven-year USD950 million facility and a five-year USD115 million loan. Earlier this week, Live Nation sold USD200 million of 7% notes due in 2020 that could yield 6.2%.
In 2010, Live Nation acquired Ticketmaster. This resulted to the surge in its debt, which further led to Live Nation's move to reduce its interest expenses. As of June 30 this year, the company listed long-term borrowings worth USD1.66 billion. Live Nation said the profits of its latest loans and senior notes were utilized to repay its current higher-priced loans, including its 8.125% notes.
Live Nation rose by 2.4% to USD17.20 at the close in New York. This year, its shares gained around 85%.
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