…SFX Entertainment Inc bondholders, who are looking for a savior for the electronic dance music festival promoter, are pinning their hopes on Live Nation Entertainment Inc, according to people familiar with the matter.
Live Nation has shown interest in SFX and its assets, including its days-long festivals and events, according to the people. However, Live Nation, which is also a concert promoter, is not in a rush because of a potential debt restructuring at SFX, they said.
A sale to Live Nation is certainly one option SFX is considering as it struggles to overhaul its approximately $300 million debt load, one of the sources said.
A deal with Live Nation could potentially help the holders of the company’s bonds because of provisions in original offering documents that call for more than full repayment during a change in control. But if Live Nation buys only some assets of SFX, it is unclear if the provision would apply….
Editor’s note – this would be an interesting acquisition as Live Nation already own a reported 50% interest in Insomniac Events, SFX prime competition, as well as Hard Events. With a SFX acquisition this would give Live Nation a vitual monopoly on large scale EDM events.
Read more at: http://www.reuters.com/article/sfx-ma-livenation