Madison Square Garden Entertainment Announces 7.15 Mln Secondary Offering, $50 Mln Share Repurchase

(RTTNews) - Madison Square Garden Entertainment Corp. (MSGE), announced on Monday that Sphere Entertainment Group, LLC, or the Selling Stockholder has started an underwritten secondary offering of 7,150,000 shares of MSGE common stock.

In pre-market activity, shares of MSGE are trading at $30.60 down 6.56% on the New York Stock Exchange.

The selling stockholder will also grant the underwriters a 30-day option to purchase up to an additional 1,071,188 shares of MSGE common stock at the public offering price.

The selling stockholder will receive all the net proceeds from the offering whereas MSGE will not be selling any shares in the offering and will not be receiving any proceeds in relation to the offering.

BofA Securities, Goldman Sachs & Co. LLC, and J.P. Morgan are serving as the joint book runners for the offering.

Additionally, the company announced a share repurchase of around $50 million of its common stock at a price per share equal to the price at which the underwriters will purchase the shares from the selling stockholder in the offering.

MSGE 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.