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SFX Entertainment upsizes and prices second lien offering of USD75m senior notes.

M2 EQUITYBITES-September 22, 2014-SFX Entertainment upsizes and prices second lien offering of USD75m senior notes


SFX Entertainment Inc (NASDAQ:SFXE), a producer of live events and digital entertainment content, stated on Friday that it has upsized and priced an offering of USD75m aggregate principal amount of additional 9.625% second lien senior secured notes due 2019 (the new notes).

The company added that this is in connection with its earlier private offering exempt from the registration requirements under the US Securities Act of 1933, as amended, including USD10m in a concurrent private placement to an entity controlled by it chief executive officer and chairman on the board, Robert F X Sillerman. The offering will close on 24 September 2014, subject to customary closing conditions, it added.

This offering is a total increase of USD25m and the new notes are in addition to the USD220m aggregate principal amount of the company's 9.625% second lien senior secured notes due 2019, issued on 4 February 2014.

Net proceeds of the new notes will be used for working capital and general corporate purposes such as repayment of all of the company's borrowings under the revolving credit facility and the financing of acquisitions, two of which will close simultaneously with the closings of the new notes and for paying related fees and expenses. These notes will be fully and unconditionally guaranteed, jointly and severally, by each of SFX's existing and future wholly owned domestic restricted subsidiaries as well as by its non-wholly owned domestic subsidiary SFX-Nightlife Operating LLC (together, the guarantors').

Finally, the new notes and the guarantees will be secured by a second-priority lien on almost all of SFX's and the guarantors' assets, subject to certain exceptions and permitted liens, the company said.

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Publication:M2 EquityBites (EQB)
Date:Sep 22, 2014
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