Bank of N.Y. doles out $600 mil
Adding to its already hefty war chest used to fund acquisitions, SFX Entertainment has received a commitment from the Bank of New York to increase to $600 million the money it has available for acquisitions. SFX’s previous facility was $300 million.
The bank acted as the lead arranger of the seven-year, senior-secured facility, which SFX said it will use to fund all previously announced acquisitions and will leave a “substantial surplus for future expansion,” the company said in a statement.
“We are very happy to receive this show of confidence from our senior lenders,” said Robert Sillerman, exec chairman of SFX. “This new facility will allow us the financial flexibility to take advantage of substantial new acquisition opportunities. And as we have in the past, we will endeavor to use this increased debt capacity to add to our growing complement of live entertainment companies at prices which will be attractive to our shareholders.”
Sillerman continued, “Based on recent estimates by Wall Street analysts, upon completion of all announced transactions, our debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio will be approximately 5 (times) at the end of this year and considerably below 4 (times) for 1999 — well within our debt covenants.”
SFX Entertainment is the live entertainment industry’s leading promoter, producer and venue operator. It owns and operates the largest network of venues in the country used principally for concerts and other live entertainment events.
It has a quartet of deals in the works, such as the recently announced acquisitions of Magicworks and the Marquee Group.
Upon completion of all pending acquisitions, SFX will have 73 venues either directly owned or operated under lease or exclusive booking arrangements in 28 of the top 50 markets, including 13 amphitheaters in 9 of the top 10 markets.
SFX also develops and manages touring Broadway shows, selling subscription series in 39 of the esti-mated 60 markets that maintain active touring schedules with approximately 240,000 subscribers last year.