05-19-14 Live Nation Entertainment (LYV)

$250m (+25m) se unsec cb coming tonight from GS/TERMS. Terms: 5y 2½-3%  up 47½-52½%, full pctns. Cncrnt 8y $250m sen sec str8 (5½-5¾% px talk). LMCA to acq 3.7m shares (Happy Meal).UOP=acq /redeem existing 2⅞% cb/gcp. $4.4bn live ent/co w/185 domestic venues & 113 internationally. Stk +66% LTM. Assuming 2⅞% rdmptn PFcash=1.909bn, debt=2087bn, LTMebitda=562m, fcf=378m, gross lev =3.7x. 7% sen sec (sub grntee) backs out L+325 OAS, assuming 108 (4y exp life). We’d assume L+325 for 5y. ADV=1.2bn, low OI leaps 1y 100/200d historic=31.5/31.5%.We’d assume 28vol.Theo=101/102⅝ /104.3. Any reasonable cpn on any reasonable credit will demand a higher prem within current paradigm but 50% is still a stretch Deal is 4 U2, not a COLDPLAY & KEANE if pricing is not outside.

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