Madison Square Announces Pricing Of Secondary Offering Of 7.15 Mln Shares At $32.50/shr

(RTTNews) - Madison Square Garden Entertainment Corp. (MSGE) announced the pricing of underwritten secondary offering by Sphere Entertainment Group, LLC of 7.15 million shares of MSG Entertainment's Class A common stock at a public offering price of $32.50 per share.

The shares are expected to be delivered on or about September 22, 2023. The Selling Stockholder has granted the underwriters a 30-day option to purchase up to an additional 1.07 million shares of MSG Entertainment's Class A common stock at the public offering price, less underwriting discounts.

In addition, MSG Entertainment intends to repurchase about 1.60 million shares of its Class A common stock from the underwriters, at a price of $31.20 per share, for an aggregate amount of about $50 million.

The company plans 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.

MSG Entertainment noted that it 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.