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SFX secures USD90m in new financing

SFX Entertainment has secured USD60 million in new financing and refinanced its existing USD30 million revolving credit facility, securing capital for new initiatives and operating and working capital needs.

The USD90 million comes from both new and existing investors, with USD60 million in private placement financing and USD30 million in a revolving credit facility.

“This round of financing from these sophisticated investors reflects a level of confidence and provides growth capital to support many of the exciting new initiatives SFX is undertaking,” says Robert F X Sillerman, the Company’s Chairman and Chief Executive Officer. “While the Company continues to explore strategic alternatives, this solidifies SFX for the short and long term, so we can focus on producing great festivals and events and operating globally recognised digital properties."

Additionally, the Company’s special committee and its advisors continue to accept proposals for the entire company, as well as assets not central to its core business, with a deadline of 2 October, 2015.

Richard Rosenstein, Chief Financial Officer and Chief Administrative Officer of the Company, says: “Together, these transactions immediately improve our financial position by providing us with additional operating and working capital. We value these investors’ confidence in our business and equally appreciate the commitment made by GoldenTree through the assumption of our revolving credit facility. With the success of many of our festivals in the current quarter and this added financial flexibility, SFX is better positioned to continue growing our powerful brands and support our extraordinary team members who are focused on executing on our strategic plans. This also eliminates all operating distractions as we explore proposals from interested strategic partners.”

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