SFX Entertainment: Downgrade causes disruption; buyers show interest

By Caroline Salls

Pittsburgh, Sept. 1 – SFX Entertainment, Inc. told noteholders Tuesday that the downgrading of its corporate credit rating by rating agencies has contributed to short-term disruption to its business operations, according to an 8-K filed with the Securities and Exchange Commission.

Specifically, SFX said it has been required to expend more of its cash reserves than planned on unforeseen live event expenses, including making upfront payments to more of its live event vendors, impacting the company’s liquidity.

In addition, the company confirmed that its special committee of independent directors and management has received indications of interest regarding the potential acquisition of various components of SFX’s business.

The committee and management are continuing to review these indications of interest, which are non-binding, the 8-K said.

SFX is a New York-based producer of live events and entertainment content.

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