Sphere Entertainment talks $225 million five-year convertibles at 3.25%-3.75%, up 25%-30%

By Abigail W. Adams

Portland, Me., Dec. 5 – Sphere Entertainment Co. plans to price $225 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 3.25% to 3.75% and an initial conversion premium to 25% to 30%, according to a market source.

BofA Securities Inc. and J.P. Morgan Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $33.75 million.

The notes will be settled in cash, shares or a combination of both at the company’s option.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Sphere Entertainment is a New York-based live entertainment and media company.

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