Madison Square Garden Entertainment Corp. Announces Secondary Offering and Share Repurchase
NEW YORK, Sept. 18, 2023 /PRNewswire/ -- Madison Square Garden Entertainment Corp. (NYSE: MSGE) (the "Company" or "MSG Entertainment") today announced that Sphere Entertainment Group, LLC (the "Selling Stockholder") has commenced an underwritten secondary offering of 7,150,000 shares of MSG Entertainment's Class A common stock. In connection with the offering, the Selling Stockholder intends to grant the underwriters a 30-day option to purchase up to an additional 1,071,188 shares of MSG Entertainment's Class A common stock at the public offering price, less underwriting discounts.
In addition, as part of the secondary offering, MSG Entertainment intends to repurchase a number of shares of its Class A common stock from the underwriters equivalent to approximately $50 million (the "share repurchase") under the Company's existing share repurchase authorization at a price per share equal to the price at which the underwriters will purchase the shares from the Selling Stockholder in the offering. The Company intends to fund the share repurchase from borrowings under its existing revolving credit facility, which has been amended to increase the available capacity from $100 million to $150 million. Upon completion of the share repurchase, the Company estimates that the outstanding balance under its revolving credit facility will be approximately $67 million.
The Selling Stockholder will receive all of the net proceeds from the offering. MSG Entertainment is not selling any shares of its Class A common stock in the offering and will not receive any proceeds from the sale of shares by the Selling Stockholder in the offering. Upon completion of the offering, if the underwriters' option to purchase additional shares is exercised in full, the Selling Stockholder will no longer own any MSG Entertainment Class A common stock.
BofA Securities, Goldman Sachs & Co. LLC and J.P. Morgan (in alphabetical order) are acting as joint book-running managers for the offering.
The offering will be made only by means of a prospectus. A copy of the registration statement, including the preliminary prospectus relating to this offering, may be obtained through the following link: https://www.sec.gov/Archives/edgar/data/1952073/000119312523236537/d508798ds1.htm. Alternatively, the Company or any underwriter participating in the offering will arrange to send you the prospectus if you request it by contacting: BofA Securities, 201 North Tryon Street, Charlotte, NC 28255, Mail Code NC1-022-02-25, attention: Prospectus Department or by email at [email protected]; Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, attention: Prospectus Department, by telephone at (866) 471-2526 or by email at [email protected]; J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone: 1-866-803-9204 or by email at [email protected].
A registration statement on Form S-1 relating to the securities has been filed with the Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Before you invest, you should read the prospectus in that registration statement for more complete information about the Company and this offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Madison Square Garden Entertainment Corp.
Ari Danes, CFA
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SOURCE Madison Square Garden Entertainment Corp.
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