SFX Entertainment has had many inconsistencies in 2015 so far, but the company hopes to gain some stability with new financing. SFX announced on Thursday that $90 million has been raised from new and existing investors.
An anonymous investor purchased $30 million of senior preferred stock in the company, which can be converted into SFX shares at $1.75 per share. This stock also received a 9 percent cash dividend.
SFX Entertainment founder Robert Sillerman‘s Sillerman Investment Partners III LLC purchased $15 million of junior preferred stock, which has an obligation to purchase another $15 million over the next 30 days. The other $30 million of financing comes from SFX’s revolving credit facility.
“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.
Investors are happy to hear the news of the financing, as the company has had many issues of the past few months, including lawsuits and liquidity problems. SFX shares are now up 32 percent to $0.62 per share.