SFX receives $90 million in financing
SFX Entertainment has been granted a lifeline from investors after a tumultuous summer of financial instability. Amidst cancelled festivals, attempts at privatization, and class action lawsuits, the dance music promoter managed to raise $90 million from new and existing investors.
One unnamed institutional investor purchased $30 million in SFX stock. CEO Robert SIllerman’s company Sillerman Investment Partners LLC purchased $15 million in stock, and has an obligation to purchase an additional $15 million in the next 30 days. The final $30 million in financing comes from the company’s revolving credit facility, a line of credit where SFX pays a commitment fee and is then able to use the funds wherever they are needed most.
“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 recognized digital properties,” Sillerman said in a statement. Investors are undoubtedly encouraged by the news as well, as SFX’s stock has risen 32%. While this injection of cash is not a long-term solution for the struggling company, it is the first hopeful announcement that has come from the company in some time.