Ticket vendor Live Nation has announced that it will sell $800 million in bonds to raise money for “general corporate purposes,” after being heavily impacted by the COVID-19 pandemic. These bonds are the latest in a series of financial strategies the company has used to help stay afloat during the ongoing health crisis.
According to the New York Times, Live Nation put its debt for sale through the Federal Reserve’s bond buying program, which launched on May 12th. Prospective buyers can buy these corporate bonds through a brokerage firm, bank, bond trader, or a broker.
According to Deadline, the company received $120 million revolving credit facility loan and announced plans for $500 million in cost cuts this year, which includes salary cuts for CEO Michael Rapino and other top executives at the company. Live Nation and other large entertainment companies are expected to face up to $10 to $12 billion in losses this summer, as large gatherings are cancelled worldwide.
Last month the nation of Saudi Arabia made a $500 million purchase of Live Nation, making it the third-largest shareholder within the company. This purchase comes at a time when Saudi Arabia is seeking to promote its burgeoning tourism industry, which has been placed on hold due to the pandemic.
The company has been looking into holding drive-in concerts and even socially distanced shows as possible alternatives during the pandemic. While some drive-in concerts are setting up across different states as of press time, the first attempt at socially distanced concert, featuring Travis McCready of Bishop Gunn, is receiving backlash by the health department in Arkansas.
Live Nation subsidiary Ticketmaster had sold tickets for and made social distancing plans for the McCready concert, however Arkansas Governor Asa Hutchinson stated that this event was non-compliant with the state’s stay-at-home orders. Organizers from the TempleLive venue, where the event is being held, have stated that they will continue to hold the event despite a cease and desist order by the state’s health department.
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