Research Update: Live Nation Entertainment Inc. Downgraded To 'B+', Outlook Negative; Proposed Senior Secured Notes Rated 'BB-'

U.S.-based Live Nation Entertainment Inc. will experience dramatic revenue declines during the coronavirus outbreak due to postponed and canceled live music events, and we expect the company to generate negative EBITDA in 2020 as its cost management initiatives will not fully offset revenue declines. The company is also proposing to issue $800 million in senior secured notes to provide additional liquidity during this period of lower revenues. We are lowering our issuer credit rating to 'B+' from 'BB-' and removing our ratings from CreditWatch, where we placed them with negative implications on March 16, 2020. The outlook is negative. At the same time, we are lowering our issue-level ratings on the secured debt to 'BB-' from 'BB' and on the

...- U.S.-based Live Nation Entertainment Inc. will experience dramatic revenue declines during the coronavirus outbreak due to postponed and canceled live music events, and we expect the company to generate negative EBITDA in 2020 as its cost management initiatives will not fully offset revenue declines. - The company is also proposing to issue $800 million in senior secured notes to provide additional liquidity during this period of lower revenues. - We are lowering our issuer credit rating to 'B+' from '##-' and removing our ratings from CreditWatch, where we placed them with negative implications on March 16, 2020. The outlook is negative. - At the same time, we are lowering our issue-level ratings on the secured debt to '##-' from '##' and on the unsecured debt to 'B' from 'B+'. We are assigning a '##-' issue-level rating to the proposed senior secured notes in line with the rating on the existing secured debt facilities. - The negative outlook reflects Live Nation's exposure to postponed...

Research Update