Live Nation will continue to promote non-theatrical shows at the three venues.
"This sale will generate a multiple to operating income in excess of 10x and allow us to apply 50% of the proceeds as a permanent reduction in our term loans," said Michael Rapino, President and Chief Executive Officer. "We are actively working to divest our remaining non-core assets as we continue to enhance our liquidity and de-lever our balance sheet."
Live Nation will recognize a non-cash impairment charge of approximately $7.7 million in the first quarter of 2009 which reflects the difference between the sales price and the carrying value on the company’s balance sheet driven primarily by the 2004 value of the Boston Opera House. This non-cash charge does not affect the company’s liquidity, adjusted operating income or operating cash flows.
About Live Nation:
Live Nation’s mission is to maximize the live concert experience. Our core business is producing, marketing and selling live concerts for artists via our global concert pipe. Live Nation is the largest producer of live concerts in the world, annually producing over 22,000 concerts for 1,600 artists in 33 countries. During 2008, the company sold over 50 million concert tickets and drove over 70 million unique visitors to LiveNation.com. Live Nation is transforming the concert business by expanding its concert platform into ticketing and building the industry’s first artist-to-fan vertically integrated concert platform. The company is headquartered in Los Angeles, California and is listed on the New York Stock Exchange, trading under the symbol LYV. For additional information about the company, please visit www.livenation.com/investors.
Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties. Such statements include, but are not limited to, statements regarding: the anticipated timing for the closing of the transaction; Live Nation’s future promotion of events at the divested venues; and the company’s ongoing efforts to divest non-core assets, enhance its liquidity and de-lever its balance sheet. Live Nation wishes to caution you that there are some factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges and market and general economic factors. Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, specifically the section titled "Item 1A. Risk Factors" of Live Nation’s most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company’s projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Live Nation undertakes no obligation to update publicly or revise any forward-looking statements.
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SOURCE: Live Nation