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Sphere Entertainment has given a first glimpse inside its finances. james dolanThe $2 billion Sphere project in Las Vegas was newly filed with the Securities and Exchange Commission on Tuesday (Dec. 5).
The company, which spun off from Madison Square Garden Entertainment in April and now trades on the New York Stock Exchange as SPHR, reported positive adjustments in the quarter due to venue openings and successful shows including: The company is expected to report a profit after that. U2:UV’s Achtung Baby Live At Sphere.
According to Billboard Boxscore, U2 has generated nearly $110 million in ticket sales in the 17 shows that began at the Sphere in September. The SEC filing states that these shows generated a total of $30.7 million in revenue for Sphere Entertainment through Nov. 30. postcard from earthtotal revenue from ticket sales from 111 screenings was approximately $44.5 million.
U2 played their first show at the Sphere on September 29, 2023, beginning a multi-month run at the venue. Due to strong demand, an additional 15 shows have been added in January, February and March 2024, bringing the band’s scheduled number of shows to 40.
The company also said in its SEC filing that it plans to raise funds through the sale of $225 million in convertible notes due in 2028, with an option for buyers to purchase an additional $33.75 million in notes. also announced.
Sphere Entertainment intends to use a portion of the proceeds from the sale of the notes to fund a capped call transaction intended to mitigate potential dilution of its common stock from a debt-to-equity conversion. . According to the release announcing the offering, the remainder of the net proceeds will be used for general corporate purposes, including capital for Sphere-related growth initiatives. The initial exchange rate, interest rate, and certain other terms of the Notes will be negotiated between Sphere Entertainment and the initial purchaser.
Sphere Entertainment began the quarter (starting September 30) with $433.5 million in cash on hand, of which $123 million came from advance ticket sales. At the beginning of the quarter, the Company’s total debt principal balance was approximately $1.2 billion, including $932.3 million of debt under the MSGN Credit Facility. Under the terms of the agreement with MSGN, the required quarterly amortization expense of $103.1 million is due from September 30, 2023 to October 11, 2024.
Sphere Entertainment’s stock price fell nearly 20% in trading after the company announced the bond issue, but rebounded slightly to end the market down 15.5% at $28.41.