Sphere Entertainment tumbles on $225 mln convertible debt offering

Sphere Entertainment

05/12/2023 12:50

** Sphere Entertainment's  SPHR.N  stock tumbles 13.9%
premarket to $28.95, a five-month low, as it looks to raise
capital
    ** Live entertainment and media co offering privately $225
mln 5-yr convertible bonds
    ** Co says plans to use net offering proceeds for general
corp purposes, including funding growth
    ** It expects its Sphere segment will report positive adj
operating income for fiscal qtr ending Dec, and it had cash of
$433.5 mln as of Sept 30, per SEC filing
    ** Co also says MSG Networks will be unable to generate
sufficient operating cash flows over next 12 months to settle
borrowings, therefore, management plans to refinance the MSGN
credit facilities prior to maturity, per the filing
    ** With ~35.1 mln shares outstanding, per LSEG, SPHR has
~$1.2 bln market cap
    ** SPHR shares up 62% YTD through Mon close

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))